Interurban Innovation Networks and Export Quality

Abstract

Although the role of innovation in export upgrading has been widely acknowledged, the impact of interurban innovation networks on export product quality remains underexplored. This study examined how interurban innovation collaborations influenced export quality in China using joint patent application and customs trade data from 2001 to 2015. Stronger innovation linkages between cities significantly improved export quality, and this result was robust to a range of checks and to an instrumental variable strategy that alleviated endogeneity concerns. The effect arose mainly through stronger innovation capacity, lower information costs, and more efficient resource allocation. It was more pronounced for exports to developed markets, in core cities, and in cities with greater absorptive capacity, and was strengthened by informal institutions such as social trust and cultural diversity. These results clarify the contribution of innovation to export upgrading from the perspective of network externalities and offer policy implications for strengthening interurban innovation collaboration and advancing high‐quality trade development.