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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Main Authors: Yixin Dai, Yuanhong Hu, Manzoor Ahmad, Yunting Mou
Format: Article
Language:English
Published: Elsevier 2025-09-01
Series:Journal of Innovation & Knowledge
Subjects:
O30
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
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institution Kabale University
issn 2444-569X
language English
publishDate 2025-09-01
publisher Elsevier
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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