TITLE:
Impact of Innovation Capacity on Regional Economic Resilience: Based on Entropy-Tobit Model
AUTHORS:
Changling Guan, Jitong Zhang
KEYWORDS:
Innovation Capacity, Economic Resilience, Industrial Diversification, Industrial Specialization, Entropy-Tobit Model
JOURNAL NAME:
Open Journal of Business and Management,
Vol.10 No.5,
September
23,
2022
ABSTRACT:
In recent years, uncertain events such as financial crisis, trade
frictions, and an outbreak of COVID-19 have occurred frequently, which have
made economic development face severe tests, so the issue of regional economic
resilience has attracted much attention. As the link between industrial
structure and economic growth, innovation capacity has an essential impact on
economic resilience. Based on measuring the economic resilience of 31 provinces
(municipalities and autonomous regions) in China from 2008 to 2019, this study uses
the Entropy-Tobit model to analyze the specific role of innovation capacity impact
on economic resilience. The findings confirm that the overall level of China’s
economic resilience has increased annually, with significant regional differences: the Eastern is higher than
the Western, and the high-value regions have been shifting from north to
south. Innovation capacity is positively correlated with economic resilience,
and the magnitude of its effect is influenced by industrial structure with a
regional, which means that regions with a higher degree of industrial
specialization have a relatively weaker ability of innovation capacity to
enhance economic resilience. Thus, to strengthen the ability of Chinese regions
to cope with risks, regions need to focus on fostering innovation capabilities,
optimizing industrial structures, and building supporting economic systems.