Transformations  in
Business & Economics

IMPACT OF INTERNET TECHNOLOGY ON SPATIAL TECHNOLOGY HETEROGENEITY: OPENNESS OR CONVERGENCE - EVIDENCE FROM PROVINCIAL DATA IN CHINA⁷
Xuefeng Shao, Di Wang, Xinda Li, Hualu Shao

ABSTRACT. The essence of whether a region's technological level is open or convergent compared with that of developed regions is whether such a region can achieve technological catch-up. The ability of resource integration of the Internet plays an important role in the allocation of resource factors that affect technological catch-up. In this paper, we intend to inspire underdeveloped countries and regions to make up for the shortboard of Internet development, further increase information network supporting technology, human capital investment, and research and development (R&D) investment as soon as possible to achieve technological convergence or even beyond. We took Chinese provincial data from 2006 to 2018 as the research sample and used the dynamic spatial panel model to measure and systematically test the role of "the Internet" in the impact of spatial technological catch-up. As per the findings of this study, it was determined that "the Internet" accelerates the convergence of spatial technology heterogeneity in China. Moreover, from the perspective of the influencing mechanism, "the Internet" can indirectly promote the regional technological catch-up effect by accelerating human capital accumulation and amplifying R&D funds.

KEYWORDS:  internet, technological catch-up, technological progress, dynamic spatial econometric model.

JEL classification:  C73, D31, H26.

⁷Acknowledgements:  This work is supported by the project of the National Social Science Fund of China (No.20BJY224) and the Key Project of Jilin Social Science Fund (No. 2020A17). Disclosure statement: No potential conflict of interest was reported by all the authors.