Exploring the spatial dimensions of nanotechnology development in China: the effects of funding and spillovers

Abstract

This paper investigates the factors driving nanotechnology development in Chinese regions. Advanced regions of China have spearheaded the country’s rapid growth in nanotechnology, aided by substantial support from the government. While this head start could potentially perpetuate regional inequalities through agglomeration economies, the results suggest that knowledge spillovers exert a substantially greater impact in peripheral regions compared with the advanced ones, and may thus be compensating for the limited institutional support they receive and their weak technological capabilities. This research contributes to the regional innovation literature by highlighting that a formal scientific network can counteract the forces of agglomeration economies and spur innovation in peripheral regions.