Role of scientific and technological innovations on industrial upgradation in China: A spatial econometric analysis

• Published in: PloS one Vol. 19; no. 5; p. e0304344
• Main Authors: Liu, Yankun, Madni, Ghulam Rasool
• Format: Journal Article
• Language: English
• Published: United States Public Library of Science 30-05-2024; Public Library of Science (PLoS)
• Subjects: China; Competitive advantage; Consumption; Development strategies; Earth Sciences; Econometrics; Economic analysis; Economic Development; Economic growth; Economic structure; Efficiency; Engineering and Technology; Geospatial data; Humans; Industrial development; Industrial Development - trends; Industry - economics; Innovations; Inventions - economics; Models, Econometric; People and Places; Physical Sciences; R&D; Regional development; Regional planning; Research & development; Social Sciences; Spatial analysis; Technological change; Technology; Technology adoption; China
• ISSN: 1932-6203; 1932-6203
• DOI: 10.1371/journal.pone.0304344

China is in a phase of high-quality development, where scientific and technological innovations are serving as the primary driving force for its development strategy. This emphasis on innovations is expected to fuel the upgrading of the industrial structure. This study investigates the role of scientific and technological innovations in industrial upgradation in China using spatial econometric analysis. Leveraging the data of 31 provinces of China from 2005 to 2022, we employed a spatial Durbin model to determine the spatial spillover effects of scientific and technological innovations on industrial upgradation. Our findings reveal the significant positive spatial spillover effects, indicating that provinces with higher levels of scientific and technological innovations tend to experience greater industrial upgradation, which in turn contributes to regional economic development. Furthermore, the findings suggest a strong spatial correlation between innovation and the upgrading of industrial structures, indicating that regional innovations have the potential to drive China's industrial upgradation. These results underscore the critical role of scientific and technological innovations in promoting industrial upgradation and regional development in China.