The Impact of Transportation Infrastructure on Regional Innovation Capability: A Dynamic Durbin Panel Data Approach

Abstract

Using data from 30 provinces in China over the period 1995–2015, by applying a dynamic spatial panel data model, it is shown that per capita number of patent applications is stable. Then we use bias corrected QML estimator method to explore the spatial spillover effects of transportation infrastructure on regional innovation capability. Results show: (1) China's regional innovation capability has a cumulative effect on time and space, and still has time lag effect in space: (2) effect of transport infrastructure on regional innovation capability is not limited to local, the transportation infrastructure will also affect the neighboring areas’ innovation, namely traffic infrastructure has a spatial spillover effect.