Spatial spillovers and value chain spillovers: evaluating regional R&D efficiency and its spillover effects in China

Research and development (R&D) efficiency assessment is an effective way for policymakers to develop strategies to increase the beneficial impacts of R&D. This study measures regional R&D efficiency from a multi-stage R&D perspective. It examines the spatial spillover effects and value chain spillover effects of R&D using panel data from 2009 to 2016 for 30 provinces in China. By estimating a spatial Durbin model, we find evidence of strong spatial dependence in R&D efficiency in China. With respect to R&D value chain effects, we find that R&D value chain spillovers took place intra-regionally but not inter-regionally. This finding indicates that in a knowledge flow context, there are two-way R&D value chain spillovers in which the forward spillover effects are stronger than the backward spillover effects. This finding adds important new knowledge to research on knowledge spillovers: distinguishing between value chain spillovers and spatial spillovers opens new avenues for future empirical inquiries.