Discussion Paper

No. 2010-26 | November 04, 2010
An Inquiry into the Development of Science and Technology Parks in China


In order to investigate the effectiveness of science and technology industrial parks (STIPs), this study examines data on high-tech firms within and outside the STIPs in China, while paying special attention to the issues related to agglomeration and congestion. The main finding is that the negative effect of congestion on productivity is highly likely to outweigh the positive productivity effect of agglomeration economies within the STIPs but not among high-tech firms outside the STIPs. The paper also finds that the productivity of high-tech firms, whether within or outside the STIPs, are positively associated with foreign direct investment and the academic activities of local universities in the same city.

JEL Classification:

O3, O4


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Cite As

Tetsushi Sonobe and Haiyang Zhang (2010). An Inquiry into the Development of Science and Technology Parks in China. Economics Discussion Papers, No 2010-26, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2010-26

Comments and Questions

Anonymous - I don't understand what is required
December 01, 2010 - 04:18

This paper uses micro data to investigate the factors associated the performance of business incubators in China. Business incubators have proliferated in China as well as in the developed countries. Because of China’s rapid economic growth, economic researchers and policy makers, especially those in developing countries, are interested ...[more]

... in China’s industrial development policies and its science and technology policies. Nonetheless, little has been known about business incubation in China. Moreover, few attempts have been made to investigate the factors associated with business incubators rigorously even in the developed countries. To my knowledge, this paper is the first to apply the econometrics methodology to the data on incubators in China. The estimation results suggest that the incubators are concerned with increasing the number of graduates but little with improving the quality of graduates. This contrast seems robust and useful. The sample used is small in size, but I see no problem in the way in which the data are analyzed. The paper as a whole is well-written. Its discussion seems to be of relevance to developing countries other than China as well.
Yet, the quality of the paper will be improved if the following points are considered:
(1) In Tables 3 and 4, university-based incubators and government-established incubators have different coefficients on some variables, such as the log of F. The differences are not significant at the 10 percent level, but still it should be regarded as marginally significant because the sample is small in size. Moreover the differences disappear in Table 5. An explanation should be offered to these points.
(2) Perhaps, the controls such as UT, FDI, and WP are all related to the scale of the city in which the incubator is located. I would like to see what if one or two of these variables are excluded from the regressions.
(3) The paper suffers from spelling mistakes, such as “special economics literature.” I think this should read “spatial economics literature.”

Anonymous - Referee Report 1
December 14, 2010 - 10:18

See attached file

Anonymous - Referee Report 2
December 14, 2010 - 10:22

See attached file

Johannes Van Biesebroeck - Decision Letter
December 14, 2010 - 10:27

See attached file