Innovation-driven growth: the power of technological capability in regional development
As regional development becomes increasingly technically complex, technological capability has a growing influence on economic growth. Traditional theories predominantly concentrate on macro-level concepts, often overlooking the relationship between technological capability and regional economic gro...
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| Format: | Article |
| Language: | English |
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Elsevier
2025-09-01
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| Series: | Journal of Innovation & Knowledge |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2444569X25001088 |
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| author | Yixin Dai Yuanhong Hu Manzoor Ahmad Yunting Mou |
| author_facet | Yixin Dai Yuanhong Hu Manzoor Ahmad Yunting Mou |
| author_sort | Yixin Dai |
| collection | DOAJ |
| description | As regional development becomes increasingly technically complex, technological capability has a growing influence on economic growth. Traditional theories predominantly concentrate on macro-level concepts, often overlooking the relationship between technological capability and regional economic growth, which has seldom been empirically examined. From the perspective of ‘technology space’, we select data on Chinese invention patents to construct indicators and explore its impact on economic growth. Our empirical results reveal that technological capability is a significant driver of regional economic growth. Our findings reveal four notable results. (1) Technological capability positively promotes regional growth but exhibits certain non-linear characteristics wherein as technological capability improves, its marginal effect on economic growth diminishes. (2) Technological capability primarily fosters regional economic growth through technological upgrading, industrial diversification and knowledge spillover mechanisms. (3) The policy environment and market conditions moderate the promotional effect of local technological capability on regional economic growth. (4) The economic growth effect of technological capability is time-dynamic and exhibits regional heterogeneity. The conclusions of this study deepen the understanding of regional development theory in terms of technology path dependence and breakthrough mechanisms, revealing technological capability as a core driving force behind regional economic evolution and redefining the logic of regional economic growth. These insights offer actionable guidelines for policymakers to tailor strategies according to local technological endowment stages. |
| format | Article |
| id | doaj-art-8ce824a6e5ad42788251e545052ccfc0 |
| institution | Kabale University |
| issn | 2444-569X |
| language | English |
| publishDate | 2025-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Journal of Innovation & Knowledge |
| spelling | doaj-art-8ce824a6e5ad42788251e545052ccfc02025-08-20T03:58:48ZengElsevierJournal of Innovation & Knowledge2444-569X2025-09-0110510076310.1016/j.jik.2025.100763Innovation-driven growth: the power of technological capability in regional developmentYixin Dai0Yuanhong Hu1Manzoor Ahmad2Yunting Mou3School of International Economics and Trade, Nanjing University of Finance and Economics, Nanjing,ChinaSchool of Economics & Management, Anhui Agricultural University, Hefei, ChinaTIFIES Research Group, University of Southampton Malaysia, Iskandar Puteri, Malaysia; Southampton Malaysia Business School, University of Southampton Malaysia, Iskandar Puteri, MalaysiaSchool of Accountancy, Zhejiang Financial College, Hangzhou, China; Corresponding author.As regional development becomes increasingly technically complex, technological capability has a growing influence on economic growth. Traditional theories predominantly concentrate on macro-level concepts, often overlooking the relationship between technological capability and regional economic growth, which has seldom been empirically examined. From the perspective of ‘technology space’, we select data on Chinese invention patents to construct indicators and explore its impact on economic growth. Our empirical results reveal that technological capability is a significant driver of regional economic growth. Our findings reveal four notable results. (1) Technological capability positively promotes regional growth but exhibits certain non-linear characteristics wherein as technological capability improves, its marginal effect on economic growth diminishes. (2) Technological capability primarily fosters regional economic growth through technological upgrading, industrial diversification and knowledge spillover mechanisms. (3) The policy environment and market conditions moderate the promotional effect of local technological capability on regional economic growth. (4) The economic growth effect of technological capability is time-dynamic and exhibits regional heterogeneity. The conclusions of this study deepen the understanding of regional development theory in terms of technology path dependence and breakthrough mechanisms, revealing technological capability as a core driving force behind regional economic evolution and redefining the logic of regional economic growth. These insights offer actionable guidelines for policymakers to tailor strategies according to local technological endowment stages.http://www.sciencedirect.com/science/article/pii/S2444569X25001088O30 |
| spellingShingle | Yixin Dai Yuanhong Hu Manzoor Ahmad Yunting Mou Innovation-driven growth: the power of technological capability in regional development Journal of Innovation & Knowledge O30 |
| title | Innovation-driven growth: the power of technological capability in regional development |
| title_full | Innovation-driven growth: the power of technological capability in regional development |
| title_fullStr | Innovation-driven growth: the power of technological capability in regional development |
| title_full_unstemmed | Innovation-driven growth: the power of technological capability in regional development |
| title_short | Innovation-driven growth: the power of technological capability in regional development |
| title_sort | innovation driven growth the power of technological capability in regional development |
| topic | O30 |
| url | http://www.sciencedirect.com/science/article/pii/S2444569X25001088 |
| work_keys_str_mv | AT yixindai innovationdrivengrowththepoweroftechnologicalcapabilityinregionaldevelopment AT yuanhonghu innovationdrivengrowththepoweroftechnologicalcapabilityinregionaldevelopment AT manzoorahmad innovationdrivengrowththepoweroftechnologicalcapabilityinregionaldevelopment AT yuntingmou innovationdrivengrowththepoweroftechnologicalcapabilityinregionaldevelopment |