Abstract
This paper examines the geography of high-technology industry growth in China through the shift-share analysis of relevant employment data from 2004 to 2014. To overcome the shortcomings identified in previous shift-share-based research, a new modified analytical technique was employed. The results unexpectedly show that China’s four metropolitan areas with special administrative status (Beijing, Shanghai, Tianjin, Chongqing) no longer play a leading role in driving high-tech employment growth. Moreover, the more sparsely populated regions of Xinjiang, Tibet, Ningxia, Inner Mongolia, and Hainan show the most favorable high-tech employment growth. Despite possessing an incomplete array of major industrial sectors, these provincial areas and autonomous regions are specializing in fast-growing industrial sectors, consequently yielding more significant high-tech employment growth. Thus, according to our results, specialization favors high-tech employment growth. Among other findings that diverge with earlier research on China and with contemporary assumptions about the metropolitan location of most high-tech growth, our research identifies a number of regional growth corridors tied to specific high-tech sectors as well as an inverse geographic trend in which high-tech employment growth decreases from the far less urbanized western regions to the more urbanized east. This paper concludes with several policy recommendations and suggested areas for future research.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Acs ZJ, Fitzroy FR, Smith I (2002) High-technology employment and R&D in cities: heterogeneity vs specialization. Ann Reg Sci 36:373–386
Artige L, van Neuss L (2014) A new shift-share method. Growth Change 45:667–683. https://doi.org/10.1111/grow.12065
Bakhshi H, Davies J, Freeman A, Higgs P (2015) The geography of the UK’s creative and high-tech economies. NESTA, London
Bieri DS (2010) Booming bohemia? Evidence from the US high-technology industry. Ind Innov 17:23–48. https://doi.org/10.1080/13662710903573828
Breau S, Kogler DF, Bolton KC (2014) On the relationship between innovation and wage inequality: new evidence from Canadian cities. Econ Geogr 90:351–373. https://doi.org/10.1111/ecge.12056
Cheptea A, Fontagné L, Zignago S (2014) European export performance. Rev World Econ 150:25–58. https://doi.org/10.1007/s10290-013-0176-z
Chiang S (2012) Shift-share analysis and international trade. Ann Reg Sci 49:571–588. https://doi.org/10.1007/s00168-011-0465-1
Chilian M-N (2012) Evolution of regional and sub-regional disparities in Romania: a sectoral shift-share analysis. Rom J Econ Forecast 15:187–204
Consoli D, Vona F, Saarivirta T (2013) Analysis of the graduate labour market in Finland: spatial agglomeration and skill-job match. Reg Stud 47:1634–1652. https://doi.org/10.1080/00343404.2011.603721
Cörvers F, Meriküll J (2007) Occupational structures across 25 EU countries: the importance of industry structure and technology in old and new EU countries. Econ Chang Restruct 40:327–359. https://doi.org/10.1007/s10644-008-9035-7
Cutrini E (2010) Specialization and concentration from a twofold geographical perspective: evidence from Europe. Reg Stud 44:315–336. https://doi.org/10.1080/00343400802378743
Dauth W (2013) Agglomeration and regional employment dynamics. Pap Reg Sci 92:419–435. https://doi.org/10.1111/j.1435-5957.2012.00447.x
De Silva DG, McComb RP (2012) Geographic concentration and high tech firm survival. Reg Sci Urban Econ 42:691–701. https://doi.org/10.1016/j.regsciurbeco.2012.03.001
Elburz Z, Gezici F (2012) Regional development policies and industrial employment change in turkey: a shift share analysis (1992–2008). ERSA conference Papers 01-16
Fallah B, Partridge MD, Rickman DS (2014) Geography and high-tech employment growth in US counties. J Econ Geogr 14:683–720. https://doi.org/10.1093/jeg/lbt030
Florida R (2017a) The new urban crisis. Basic Books, New York, USA
Florida R (2017b) Venture capital remains highly concentrated in just a few cities. https://www.citylab.com/life/2017/10/venture-capital-concentration/539775/. Accessed 9 Oct 2017
Florida R (2017c) For most cities, the tech boom is a bust. https://www.citylab.com/life/2017/03/the-power-of-tech-hubs/519297/. Accessed 30 Aug 2017
Florida R, Mellander C (2016) The geography of inequality: difference and determinants of wage and income inequality across US metros. Reg Stud 50:79–92. https://doi.org/10.1080/00343404.2014.884275
Fosfuri A, Rønde T (2004) High-tech clusters, technology spillovers, and trade secret laws. Int J Ind Organ 22:45–65. https://doi.org/10.1016/S0167-7187(03)00123-1
Foth NM (2010) Long-term change around SkyTrain stations in Vancouver, Canada: a demographic shift-share analysis. Geogr Bull 51:37–52
Fotopoulos G, Kallioras D, Petrakos G (2010) Spatial variations of Greek manufacturing employment growth: the effects of specialization and international trade. Pap Reg Sci 89:109–133. https://doi.org/10.1111/j.1435-5957.2009.00243.x
Gabe TM (2006) Growth of creative occupations in U.S. metropolitan areas: a shift-share analysis. Growth Change 37:396–415. https://doi.org/10.1111/j.1468-2257.2006.00329.x
Garcia-Vicente F, Garcia-Swartz D, Campbell-Kelly M (2017) Information technology clusters and regional growth in America, 1970–1980. Small Bus Econ 48:1021–1046. https://doi.org/10.1007/s11187-016-9808-8
Gierańczyk W (2010) Development of high technologies as an indicator of modern industry in the EU. Bull Geogr 14:23–35. https://doi.org/10.2478/v10089-010-0012-3
Golley J (2007) China’s Western Development Strategy and nature versus nurture. J Chinese Econ Bus Stud 5:115–129. https://doi.org/10.1080/14765280701362380
Goos M, Hathaway I, Konings J, Vandeweyer M (2013) High-technology employment in the European Union. Leuven
Goschin Z (2014) Regional growth in Romania after its accession to EU: a shift-share analysis approach. Proc Econ Financ 15:169–175. https://doi.org/10.1016/s2212-5671(14)00471-7
Greunz L (2003) Geographically and technologically mediated knowledge spillovers between European regions. Ann Reg Sci 37:657–680. https://doi.org/10.1007/s00168-003-0131-3
Hansen T, Winther L (2011) Innovation, regional development and relations between high- and low-tech industries. Eur Urban Reg Stud 18:321–339. https://doi.org/10.1177/0969776411403990
Hassan MKH, Rashid ZA, Hamid KA (2011) East coast economic region from the perspective of shift-share analysis. Int J Bus Soc 12:79–88
Herath J, Gebremedhin TG, Maumbe BM (2011) A dynamic shift-share analysis of economic growth in West Virginia. J Rural Commun Dev 6:155–169
Herath J, Schaeffer P, Gebremedhin T (2013) Employment change in LDs of West Virginia: a dynamic spatial shift-share analysis. Am J Rural Dev 1:99–105. https://doi.org/10.12691/ajrd-1-5-1
Jauhiainen JS (2006) Multipolis: high-technology network in northern Finland. Eur Plan Stud 14:1407–1428. https://doi.org/10.1080/09654310600852597
Jenkins JC, Leicht KT, Jaynes A (2006) Do high technology policies work? High technology industry employment growth in U.S. metropolitan areas, 1988–1998. Soc Forces 85:267–296. https://doi.org/10.1353/sof.2006.0128
Kemeny T, Osman T (2018) The wider impacts of high-technology employment: evidence from U.S. cities. Res Policy 47:1729–1740. https://doi.org/10.1016/j.respol.2018.06.005
Khan J, Labonté O (2017) Urban tech sector growth drives economic resilience: examining resilience in the toronto tech ecosystem. Econ Dev J 16:54–63
Kleynhans E, Sekhobela MJ (2011) Shift-share analysis of production in the manufacturing industry of South Africa’s southern district municipality. J Econ Financ Sci 4:09–30
Korres GM, Tsobanoglou GO, Kokkinou A (2011) Innovation geography and regional growth in European union. SAGE Open 1:1–10. https://doi.org/10.1177/2158244011413142
Kowalewski J (2011) Specialization and employment development in Germany: an analysis at the regional level. Pap Reg Sci 90:789–811. https://doi.org/10.1111/j.1435-5957.2011.00355.x
Lai HH (2002) China’s western development program: its rationale, implementation, and prospects. Mod China 28:432–466. https://doi.org/10.1177/009770040202800402
Lazzeroni M (2010) High-tech activities, system innovativeness and geographical concentration. Eur Urban Reg Stud 17:45–63. https://doi.org/10.1177/0969776409350795
Le Gallo J, Kamarianakis Y (2011) The evolution of regional productivity disparities in the European Union from 1975 to 2002: a combination of shift–share and spatial econometrics. Reg Stud 45:123–139. https://doi.org/10.1080/00343400903234662
Lee N, Rodríguez-Pose A (2013) Innovation and spatial inequality in Europe and USA. J Econ Geogr 13:1–22. https://doi.org/10.1093/jeg/lbs022
Lee N, Rodríguez-Pose A (2016) Is there trickle-down from tech? Poverty, employment, and the high-technology multiplier in U.S. cities. Ann Am Assoc Geogr 106:1114–1134. https://doi.org/10.1080/24694452.2016.1184081
Leicht KT, Jenkins JC (2017) State investments in high-technology job growth. Soc Sci Res 65:30–46. https://doi.org/10.1016/j.ssresearch.2017.03.007
Lu C, Wu Y, Shen Q, Wang H (2013) Driving force of urban growth and regional planning: a case study of China’s Guangdong province. Habitat Int 40:35–41. https://doi.org/10.1016/j.habitatint.2013.01.006
Martin R, Sunley P, Turner D (2002) Taking risks in regions: the geographical anatomy of Europe’s emerging venture capital market. J Econ Geogr 2:121–150. https://doi.org/10.1093/jeg/2.2.121
McCann P, Ortega-Argilés R (2015) Smart specialization, regional growth and applications to European Union cohesion policy. Reg Stud 49:1291–1302. https://doi.org/10.1080/00343404.2013.799769
Molnar M, Chalaux T (2015) Recent trends in productivity in China: shift-share analysis of labour productivity growth and the evolution of the productivity gap. OECD Economics Department Working Paper 01-14. https://doi.org/10.1787/5js1j15rj5zt-en
Mondal WI (2011) An analysis of the industrial development potential of Malaysia: a shift-share approach. J Bus Econ Res 7:41–46. https://doi.org/10.19030/jber.v7i5.2289
Moretti E (2013) The new geography of jobs. Houghton Mifflin Harcourt Publishing Company, New York
Muro M, Liu S (2017) Tech in metros: the strong are getting stronger. https://www.brookings.edu/blog/the-avenue/2017/03/08/tech-in-metros-the-strong-are-getting-stronger/. Accessed 3 Sept 2017
National Bureau of Statistics (NBS) (2005–2015) China statistics yearbook on high technology industry 2005–2015. China Statistics Press, Beijing
National Bureau of Statistics (NBS) (2002) Catalog for high-technology industrial statistics classification. China Statistics Press, Beijing
National Bureau of Statistics (NBS) (2015) China statistical yearbook 2015. https://www.stats.gov.cn/tjsj/ndsj/2015/indexeh.htm. Accessed 03 Jun 2019
Oguz S, Knight J (2010) Regional economic indicators: with a focus on sub-regional gross valued added using shift-share analysis. Econ Labour Mark Rev 4:64–105. https://doi.org/10.1057/elmr.2010.156
Perumal A (2017) 42 years of urban growth and industry composition. Atl Econ J 45:133–147. https://doi.org/10.1007/s11293-017-9541-y
Simonen J, Svento R, Juutinen A (2015) Specialization and diversity as drivers of economic growth: evidence from high-tech industries. Pap Reg Sci 94:229–247. https://doi.org/10.1111/pirs.12062
State Council (2018) Verified catalogue of development zones in China (economic and technological development zone, high-technology industry development zone, and free trade zone) (in Chinese). https://www.gov.cn/xinwen/2018-03/03/content_5270330.htm. Accessed 15 June 2020
Storey DJ, Tether BS (1998) New technology-based firms in the European Union: an introduction. Res Policy 26:933–946. https://doi.org/10.1016/S0048-7333(97)00052-8
Tiffin A (2014) European productivity, innovation and competitiveness: the case of Italy. IMF Work Pap 14:1. https://doi.org/10.5089/9781484379868.001
Van Roy V, Vértesy D, Vivarelli M (2018) Technology and employment: mass unemployment or job creation? Empirical evidence from European patenting firms. Res Policy 47:1762–1776. https://doi.org/10.1016/j.respol.2018.06.008
Vu J, Turner L (2011) Shift–share analysis to measure arrivals competitiveness: the case of Vietnam, 1995–2007. Tour Econ 17:803–812. https://doi.org/10.5367/te.2011.0070
Walcott SM (2007) The dragon’s tail: utilizing Chengdu and Chongqing technology development zones to anchor west China economic advancement. J Chinese Econ Bus Stud 5:131–145. https://doi.org/10.1080/14765280701362422
Wang S, Wu Y, Li Y (1998) Development of technopoles in China. Asia Pac Viewp 39:281–301. https://doi.org/10.1111/1467-8373.00070
Wang L, Meijers H, Szirmai A (2017) Technological spillovers and industrial growth in Chinese regions. Ind Corp Chang 26:233–257. https://doi.org/10.1093/icc/dtw022
Wever E, Stam E (1999) Clusters of high technology SMEs: the Dutch case. Reg Stud 33:391–400. https://doi.org/10.1080/713693556
Xiao L, Ritchie B (2009) Access to finance for high-tech SMEs: regional differences in China. Environ Plan C Gov Policy 27:246–262. https://doi.org/10.1068/c0817b
Yu J, Stough RR, Nijkamp P (2009) Governing technological entrepreneurship in China and the West. Public Adm Rev 69:95–100. https://doi.org/10.1111/j.1540-6210.2009.02095.x
Zheng D, Kuroda T (2013) The impact of economic policy on industrial specialization and regional concentration of China’s high-tech industries. Ann Reg Sci 50:771–790. https://doi.org/10.1007/s00168-012-0522-4
Acknowledgements
The authors wish to thank the two anonymous reviewers for their constructive comments on the earlier draft of this manuscript. Their input served to greatly strengthen our paper.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendices
Appendix 1
See Table 11.
Appendix 2
See Table 12.
Appendix 3
See Table 13.
Rights and permissions
About this article
Cite this article
Li, Q., Kovacs, J.F. & Choi, G.H. High-technology employment growth in China: geographic disparities in economic structure and sectoral performance. Econ Change Restruct 54, 1025–1064 (2021). https://doi.org/10.1007/s10644-020-09293-6
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10644-020-09293-6