Agglomeration Externalities vs. Network Externalities: Impact on Green Technology Innovation in 283 Chinese Cities

Abstract

The prominence of agglomeration externalities (AEs) and network externalities (NEs) in urban sustainable development has intensified in recent times, with advances in transportation infrastructure and information technology acting as key accelerators. Despite the scholarly attention they receive, the specific spillover effects that these externalities exert on green technology innovation (GTI) remain under-explored. In an effort to bridge this knowledge gap, the present study employs a spatial Durbin model to scrutinize, spanning a decade from 2011 to 2021, the impact and spatial spillover of AEs and NEs on GTI across 283 Chinese cities of prefecture level and above. The findings reveal the following: (1) AEs exert a U-shaped influence on GTI, initially inhibiting it, before ultimately fostering its growth. (2) NEs are found to consistently promote GTI. (3) The spatial spillover effects of AEs on GTI are significantly positive, while those from NEs are not statistically significant. (4) The influences of AEs and NEs on GTI exhibit marked regional variations. This study extends the research scope on the factors influencing GTI by examining the role of AEs and NEs, thereby aiming to offer valuable insights for enhancing the level of GTI.