How Does Digital Technology Reshape the Boundaries of Intercity Innovation Collaboration? Evidence From China
Shufen Guo
School of Public Administration, Shanxi University of Finance and Economics, Taiyuan, Shanxi, China
Search for more papers by this authorCorresponding Author
Ludi Wen
School of Public Administration, Shanxi University of Finance and Economics, Taiyuan, Shanxi, China
Correspondence: Ludi Wen ([email protected])
Search for more papers by this authorYanrui Wu
Department of Economics, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorSandun C. Perera
College of Business, University of Nevada, Reno, NV, USA
Search for more papers by this authorShufen Guo
School of Public Administration, Shanxi University of Finance and Economics, Taiyuan, Shanxi, China
Search for more papers by this authorCorresponding Author
Ludi Wen
School of Public Administration, Shanxi University of Finance and Economics, Taiyuan, Shanxi, China
Correspondence: Ludi Wen ([email protected])
Search for more papers by this authorYanrui Wu
Department of Economics, University of Western Australia, Perth, Western Australia, Australia
Search for more papers by this authorSandun C. Perera
College of Business, University of Nevada, Reno, NV, USA
Search for more papers by this authorABSTRACT
Empirical studies have rarely explored the relationship between digital technology adoption and transregional innovation collaboration at the city level. To address this important research gap, we use the negative binomial regression model to identify the impact of digital technology adoption on intercity innovation collaboration, with particular emphasis on the reshaping effect of digital technology on geographical and city hierarchical boundaries. The panel data pertains to intercity co-patents spanning the period from 2012 to 2019 in China. Our findings show that digital technology adoption significantly enhances intercity innovation collaboration. The positive relationship becomes even stronger as the geographical distance between cities increases. Furthermore, digital technology adoption strengthens innovation collaboration not only among first-tier cities but also between first-tier cities with second- and third-tier cities. These results suggest that digital technology can effectively bridge geographical distances and break city hierarchies to a limited extent. These insights can inspire policymakers to harness the power of digital technology to reshape the boundaries of intercity innovation collaboration for inclusive regional development.
Conflicts of Interest
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
Open Research
Data Availability Statement
Data will be made available on request.
References
- Agrawal, A., and A. Goldfarb. 2008. “Restructuring Research: Communication Costs and the Democratization of University Innovation.” American Economic Review 98, no. 4: 1578–1590.
- Ahn, J. M., W. Lee, and L. Mortara. 2020. “Do Government R&D Subsidies Stimulate Collaboration Initiatives in Private Firms?” Technological Forecasting and Social Change 151: 119840.
- Van Alstyne, M., and E. Brynjolfsson. 2005. “Global Village or Cyber-Balkans? Modeling and Measuring the Integration of Electronic Communities.” Management Science 51, no. 6: 851–868.
- Boschma, R. 2005. “Proximity and Innovation: A Critical Assessment.” Regional Studies 39, no. 1: 61–74.
- Von Briel, F., P. Davidsson, and J. Recker. 2018. “Digital Technologies as External Enablers of New Venture Creation in the It Hardware Sector.” Entrepreneurship Theory and Practice 42, no. 1: 47–69.
- Bürgin, R., H. Mayer, A. Kashev, and S. Haug. 2022. “Far Away and yet so Close: Urban–Rural Linkages in the Context of Multilocal Work Arrangements.” Regional Studies, Regional Science 9, no. 1: 110–131.
- Cairncross, F. 1997. The Death of Distance. Cambridge, MA: Harvard University Press.
- Calignano, G. 2022. “Not All Peripheries Are the Same: The Importance of Relative Regional Innovativeness in Transnational Innovation Networks.” Growth and Change 53, no. 1: 276–312.
- Camagni, R., and R. Capello. 2015. “Second-Rank City Dynamics: Theoretical Interpretations Behind Their Growth Potentials.” European Planning Studies 23, no. 6: 1041–1053.
- Cao, S., G. Ma, and H. Mao. 2024. “Is Distance Really Dying? Transportation and Knowledge Spillovers.” Journal of Regional Science 64, no. 2: 355–405.
10.1111/jors.12675 Google Scholar
- Capello, R., and A. Caragliu. 2018. “Proximities and the Intensity of Scientific Relations: Synergies and Nonlinearities.” International Regional Science Review 41, no. 1: 7–44.
- Cappelli, R., and F. Montobbio. 2016. “European Integration and Knowledge Flows Across European Regions.” Regional Studies 50, no. 4: 709–727.
- Ciarli, T., M. Kenney, S. Massini, and L. Piscitello. 2021. “Digital Technologies, Innovation, and Skills: Emerging Trajectories and Challenges.” Research Policy 50, no. 7: 104289.
- Cortinovis, N., and F. van Oort. 2019. “Between Spilling Over and Boiling Down: Network-Mediated Spillovers, Local Knowledge Base and Productivity in European Regions.” Journal of Economic Geography 19, no. 6: 1233–1260.
- Crescenzi, R., M. Nathan, and A. Rodríguez-Pose. 2016. “Do Inventors Talk to Strangers? On Proximity and Collaborative Knowledge Creation.” Research Policy 45, no. 1: 177–194.
- Cui, J., T. Li, and Z. Wang. 2023. “Research Collaboration Beyond the Boundary: Evidence From University Patents in China.” Journal of Regional Science 63, no. 3: 674–702.
- Cui, T., H. J. Ye, H. H. Teo, and J. Li. 2015. “Information Technology and Open Innovation: A Strategic Alignment Perspective.” Information & Management 52, no. 3: 348–358.
- Ding, W. W., S. G. Levin, P. E. Stephan, and A. E. Winkler. 2010. “The Impact of Information Technology on Academic Scientists’ Productivity and Collaboration Patterns.” Management Science 56, no. 9: 1439–1461.
- Dong, X., S. Zheng, and M. E. Kahn. 2020. “The Role of Transportation Speed in Facilitating High Skilled Teamwork Across Cities.” Journal of Urban Economics 115: 103212.
- Edwards-Schachter, M., E. Castro-Martínez, M. Sánchez-Barrioluengo, G. Anlló, and I. Fernández-De-Lucio. 2013. “Motives for International Cooperation on R&D and Innovation: Empirical Evidence From Argentinean and Spanish Firms.” International Journal of Technology Management 62, no. 2: 128–151.
- Fitjar, R. D., and A. Rodríguez-Pose. 2020. “Where Cities Fail to Triumph: The Impact of Urban Location and Local Collaboration on Innovation in Norway.” Journal of Regional Science 60, no. 1: 5–32.
- Florida, R., P. Adler, and C. Mellander. 2017. “The City as Innovation Machine.” Regional Studies 51, no. 1: 86–96.
- Forman, C., A. Goldfarb, and S. Greenstein. 2005. “How Did Location Affect Adoption of the Commercial Internet? Global Village vs. Urban Leadership.” Journal of Urban Economics 58, no. 3: 389–420.
- Forman, C., A. Goldfarb, and S. Greenstein. 2014. “ Information Technology and the Distribution of Inventive Activity.” In The Changing Frontier: Rethinking Science and Innovation Policy, 169–196. University of Chicago Press.
- Forman, C., and N. van Zeebroeck. 2019. “Digital Technology Adoption and Knowledge Flows Within Firms: Can the Internet Overcome Geographic and Technological Distance?” Research Policy 48, no. 8: 103697.
- Forman, C., and N. V. Zeebroeck. 2012. “From Wires to Partners: How the Internet Has Fostered R&D Collaborations Within Firms.” Management Science 58, no. 8: 1549–1568.
- Frick, S. A., and A. Rodríguez-Pose. 2018. “Big or Small Cities? On City Size and Economic Growth.” Growth and Change 49, no. 1: 4–32.
- Friedman, T. L. 2005. The World Is Flat: A Brief History of the Twenty-first Century. Macmillan.
- Gaspar, J., and E. L. Glaeser. 1998. “Information Technology and the Future of Cities.” Journal of Urban Economics 43, no. 1: 136–156.
- Glaeser, E. 2012. Triumph of the City: How our Greatest Invention Makes us Richer, Smarter, Greener, Healthier, and Happier. Penguin.
- Goldfarb, A., and C. Tucker. 2019. “Digital Economics.” Journal of Economic Literature 57, no. 1: 3–43.
- Guo, F., J. Y. Wang, F. Wang, T. Kong, X. Zhang, and Z. Y. Cheng. 2020. “Measuring China's Digital Financial Inclusion: Index Compilation and Spatial Characteristics.” China Economic Quarterly 19, no. 4: 1401–1418.
- Haddad, E. A., I. F. Araújo, and F. S. Perobelli. 2024. “Geographical Proximity and Technological Similarity.” Structural Change and Economic Dynamics 70: 302–318.
- Hanley, D., J. Li, and M. Wu. 2022. “High-Speed Railways and Collaborative Innovation.” Regional Science and Urban Economics 93: 103717.
- Hilbe, J. M. 2011. Negative Binomial Regression. Cambridge University Press.
10.1017/CBO9780511973420 Google Scholar
- Hong, W. 2008. “Decline of the Center: The Decentralizing Process of Knowledge Transfer of Chinese Universities From 1985 to 2004.” Research Policy 37, no. 4: 580–595.
- Hung, S. W., M. J. Cheng, C. E. Hou, and N. R. Chen. 2021. “Inclusion in Global Virtual Teams: Exploring Non-Spatial Proximity and Knowledge Sharing on Innovation.” Journal of Business Research 128: 599–610.
- Inaba, T., and M. Squicciarini. 2017. ICT: A New Taxonomy Based on the International Patent Classification. OECD Science, Technology and Industry Working Papers, No. 2017/01, OECD Publishing, Paris.
- Janssen, M. J., and M. Abbasiharofteh. 2022. “Boundary Spanning R&D Collaboration: Key Enabling Technologies and Missions as Alleviators of Proximity Effects?” Technological Forecasting and Social Change 180: 121689.
10.1016/j.techfore.2022.121689 Google Scholar
- Katz, J. S. 1994. “Geographical Proximity and Scientific Collaboration.” Scientometrics 31, no. 1: 31–43.
- Kaufmann, A., P. Lehner, and F. Tödtling. 2003. “Effects of the Internet on the Spatial Structure of Innovation Networks.” Information Economics and Policy 15, no. 3: 402–424.
- Kemeny, T., and M. Storper. 2020. “ Superstar Cities and Left-behind Places: Disruptive Innovation, Labor Demand, and Interregional Inequality.” In LSE Research Online Documents on Economics, 103312. London School of Economics and Political Science, LSE Library.
- Kogler, D. F., and K. Kim. 2021. “Following the Paper Trail: The UK Scientific and Technological Knowledge Space and Its Reliance on International Knowledge Spillovers.” Regional Studies, Regional Science 8, no. 1: 447–459.
- Korinek, A., and J. E. Stiglitz. 2021. Artificial Intelligence, Globalization, and Strategies for Economic Development (No. w28453). National Bureau of Economic Research.
10.3386/w28453 Google Scholar
- Krugman, P. 1991. “Increasing Returns and Economic Geography.” Journal of Political Economy 99, no. 3: 483–499.
- Kryzhanivska, K., E. Albats, K. Blomqvist, and A. L. Mention. 2025. “Transforming Inter-Organisational Collaboration Dynamics in Regional Networks Through Digitalisation.” Regional Studies 59, no. 1: 2416225.
- Lanzolla, G., D. Pesce, and C. L. Tucci. 2021. “The Digital Transformation of Search and Recombination in the Innovation Function: Tensions and an Integrative Framework.” Journal of Product Innovation Management 38, no. 1: 90–113.
- Li, C., Q. Zhou, and S. Chen. 2022. “Bringing Minds Together: High-Speed Railways, Team Building, and Innovation Collaboration.” China & World Economy 30, no. 6: 34–58.
- Li, S., H. Gu, and J. Shen. 2023. “Detecting Spatial Heterogeneity in the Determinants of Intercity Migration in China.” Population, Space and Place 29, no. 3: e2649.
- Lin, Y., C. B. Frey, and L. Wu. 2023. “Remote Collaboration Fuses Fewer Breakthrough Ideas.” Nature 623, no. 7989: 987–991.
- Liu, J., Y. Chen, and F. H. Liang. 2023. “The Effects of Digital Economy on Breakthrough Innovations: Evidence From Chinese Listed Companies.” Technological Forecasting and Social Change 196: 122866.
- Lundvall, B. 2016. The Learning Economy and the Economics of Hope. London New York: Anthem Press.
10.26530/OAPEN_626406 Google Scholar
- Marek, P., M. Titze, C. Fuhrmeister, and U. Blum. 2017. “R&D Collaborations and the Role of Proximity.” Regional Studies 51, no. 12: 1761–1773.
- Menzel, M. P., M. P. Feldman, and T. Broekel. 2017. “Institutional Change and Network Evolution: Explorative and Exploitative Tie Formations of Co-Inventors During the Dot-Com Bubble in the Research Triangle Region.” Regional Studies 51, no. 8: 1179–1191.
- Mergel, I., A. Kleibrink, and J. Sörvik. 2018. “Open Data Outcomes: U.S. Cities Between Product and Process Innovation.” Government Information Quarterly 35, no. 4: 622–632.
- Nambisan, S., K. Lyytinen, A. Majchrzak, and M. Song. 2017. “Digital Innovation Management: Reinventing Innovation Management Research in a Digital World.” MIS Quarterly 41, no. 1: 223–238.
- Nambisan, S., M. Wright, and M. Feldman. 2019. “The Digital Transformation of Innovation and Entrepreneurship: Progress, Challenges and Key Themes.” Research Policy 48, no. 8: 103773.
- Neter, J., M. H. Kutner, C. J. Nachtsheim, and W. Wasserman. 1996. Applied Linear Statistical Models. Chicago: Irwin.
- Nunn, N., and N. Qian. 2014. “U.S. Food Aid and Civil Conflict.” American Economic Review 104, no. 6: 1630–1666.
- OECD. 2013. Regions and Innovation: Collaborating Across Borders, OECD Reviews of Regional Innovation. OECD Publishing.
10.1787/9789264205307-en Google Scholar
- Pan, X., X. Pan, B. Ai, and S. Guo. 2020. “Structural Heterogeneity and Proximity Mechanism of China's Inter-Regional Innovation Cooperation Network.” Technology Analysis & Strategic Management 32, no. 9: 1066–1081.
- Paunov, C., D. Guellec, N. El-Mallakh, S. Planes-Satorra, and L. Nüse. 2019. “ On the Concentration of Innovation in Top Cities in the Digital Age.” In OECD Science, Technology and Industry Policy Papers No. 85. Paris: OECD Publishing.
- Porter, M. E. 1990. The Competitive Advantage of Nations. New York: Free Press.
10.1002/cir.3880010112 Google Scholar
- Roberts, J. 2000. “From Know-How to Show-How? Questioning the Role of Information and Communication Technologies in Knowledge Transfer.” Technology Analysis & Strategic Management 12, no. 4: 429–443.
- Rodríguez-Pose, A., C. Wilkie, and M. Zhang. 2021. “Innovating In “Lagging” Cities: A Comparative Exploration of the Dynamics of Innovation in Chinese Cities.” Applied Geography 132: 102475.
- Rong, K., Y. Lin, J. Yu, Y. Zhang, and A. Radziwon. 2021. “Exploring Regional Innovation Ecosystems: An Empirical Study in China.” Industry and Innovation 28, no. 5: 545–569.
- Scherngell, T., and Y. Hu. 2011. “Collaborative Knowledge Production in China: Regional Evidence From a Gravity Model Approach.” Regional Studies 45, no. 6: 755–772.
- Shearmur, R. 2012. “Are Cities the Font of Innovation? A Critical Review of the Literature on Cities and Innovation.” Cities 29: S9–S18.
- De Silva, M., L. Gokhberg, D. Meissner, and M. Russo. 2021. “Addressing Societal Challenges Through the Simultaneous Generation of Social and Business Values: A Conceptual Framework for Science-Based Co-Creation.” Technovation 104: 102268.
- Steinmo, M., and E. Rasmussen. 2016. “How Firms Collaborate With Public Research Organizations: The Evolution of Proximity Dimensions in Successful Innovation Projects.” Journal of Business Research 69, no. 3: 1250–1259.
- Stern, M. J., and D. A. Dillman. 2006. “Community Participation, Social Ties, and Use of the Internet.” City & Community 5, no. 4: 409–424.
10.1111/j.1540-6040.2006.00191.x Google Scholar
- Tang, C., P. Qiu, and J. Dou. 2022. “The Impact of Borders and Distance on Knowledge Spillovers: Evidence From Cross-Regional Scientific and Technological Collaboration.” Technology in society 70: 102014.
- Tao, Z., and Z. Shuliang. 2022. “Collaborative Innovation Relationship in Yangtze River Delta of China: Subjects Collaboration and Spatial Correlation.” Technology in society 69: 101974.
10.1016/j.techsoc.2022.101974 Google Scholar
- Tian, X., and H. Lu. 2023. “Digital Infrastructure and Cross-Regional Collaborative Innovation in Enterprises.” Finance Research Letters 58: 104635.
- Tidd, J., and J. R. Bessant. 2020. Managing Innovation: Integrating Technological, Market and Organizational Change. John Wiley & Sons.
- United Nations Conference on Trade and Development. 2021. Digital Economy Report 2021: Cross-border Data Flows and Development: For Whom the Data Flow. https://digitallibrary.un.org/record/3942554?ln=zh_CN#record-files-collapse-header.
- Walsh, J. P. 1996. “The Virtual College: Computer-Mediated Communication and Scientific Work.” Information Society 12, no. 4: 343–363.
10.1080/019722496129341 Google Scholar
- Wan, Y., Y. Gao, and Y. Hu. 2022. “Blockchain Application and Collaborative Innovation in the Manufacturing Industry: Based on the Perspective of Social Trust.” Technological Forecasting and Social Change 177: 121540.
- Wang, J., and S. Cai. 2020. “The Construction of High-Speed Railway and Urban Innovation Capacity: Based on the Perspective of Knowledge Spillover.” China Economic Review 63: 101539.
- Wang, J., B. Wang, K. Dong, and X. Dong. 2022. “How Does the Digital Economy Improve High-Quality Energy Development? The Case of China.” Technological Forecasting & Social Change 184: 121960.
10.1016/j.techfore.2022.121960 Google Scholar
- Wang, Z., L. Lin, S. Tang, and Y. Xiao. 2023. “Migration and Migrants in Chinese Cities: New Trends, Challenges and Opportunities to Theorise With Urban China.” Transactions in Planning and Urban Research 2, no. 4: 317–331.
10.1177/27541223231217431 Google Scholar
- Wilke, U., and A. Pyka. 2025. “Sustainable Innovations, Knowledge and the Role of Proximity: A Systematic Literature Review.” Journal of Economic Surveys 39, no. 1: 326–351.
- Wong, L. W., L. Y. Leong, J. J. Hew, G. W. H. Tan, and K. B. Ooi. 2020. “Time to Seize the Digital Evolution: Adoption of Blockchain in Operations and Supply Chain Management Among Malaysian SMEs.” International Journal of Information Management 52: 101997.
- Wooldridge, J. 2015. Introductory econometrics: A modern approach. Nelson Education.
- Xie, Q., and J. Su. 2021. “The Spatial-Temporal Complexity and Dynamics of Research Collaboration: Evidence From 297 Cities in China (1985–2016).” Technological Forecasting & Social Change 162: 120390.
- Xu, X., A. Watts, and M. Reed. 2019. “Does Access to Internet Promote Innovation? A Look at the US Broadband Industry.” Growth and Change 50, no. 4: 1423–1440.
- Yao, L., and J. Li. 2022. “Intercity Innovation Collaboration and the Role of High-Speed Rail Connections: Evidence From Chinese Co-Patent Data.” Regional Studies 56, no. 11: 1845–1857.
- Yao, L., J. Li, and J. Li. 2020. “Urban Innovation and Intercity Patent Collaboration: A Network Analysis of China's National Innovation System.” Technological Forecasting & Social Change 160: 120185.
- Zacchia, P. 2018. “Benefiting Colleagues but Not the City: Localized Effects From the Relocation of Superstar Inventors.” Research Policy 47, no. 5: 992–1005.
- Zhang, W., X. Liu, D. Wang, and J. Zhou. 2022. “Digital Economy and Carbon Emission Performance: Evidence at China's City Level.” Energy Policy 165: 112927.