The Influencing Mechanism of High-Speed Rail on Innovation: Firm-Level Evidence from China

Round 1

Reviewer 1 Report

This paper is very interested. I appreciate very much how the authors established the issue of the study whether theoretically or empirically. Both gaps (theoretically and empirically) are well addressed.

I may recommend only the following:

-         The authors may show and highlight more on how they build the hypothesis of the study.  

-         More highlighting on the policy implication is needed since it is not well-established in the conclusion section.

 

Accordingly, through my review I favorably validate this article proposal and recommend its publication.

 

 

 

Author Response

1.The authors may show and highlight more on how they build the hypothesis of the study.

Author Reply: Really thank you for your recommendation. We have technically edited the hypothesis based on our theoretical framework, so that it can easily follow the manuscript, shown in the section of conceptual framework.

2. More highlighting on the policy implication is needed since it is not well-established in the conclusion section.

Author Reply: Really thank you for your recommendation. We have highlighted the policy implication in the conclusion section, shown as following:

Further improving the construction of transportation to increase the frequency of face-to-face communication, thus promoting the flow of knowledge and research collaboration. Generally, each city should build a comprehensive and reasonable knowledge spillover mechanism, where the knowledge recipient should enhance the absorption capacity, so that the chain effect, imitation effect and communication effect of knowledge spillover can play a smoother role. In the context of the rapid development of high-speed lines for passenger, the knowledge spillover effect of HSR can be fully brought into play by optimizing the station layout of HSR network. It is need to consider the establishment of a “HSR city circle” centered on the nodes of HSR network, thus giving full play to the driving role of central cities in the innovation to non-central cities, effectively integrating the talent resources and innovation factors of different places, continually promoting the introduction of high-end talents and cross-regional technological cooperation, and promoting the collaborative innovation and linkage development of firm within the urban circle.

Reviewer 2 Report

The paper is very well-rooted and structured. The research question is quite original and results are consistent and well-discussed.

I only have minor issues aimed at reinforcing literature review and better clarifying some dimensions.

1. More literature on patents and role of mobility might be of help. See

-Aghion P. et al. (2015) Patent rights, product market reforms, and innovation. Journal of Economic Growth;

- Cappelli R. et al. (2019) Inventor mobility and productivity in Italian regions, Regional Studies;

-Hyuk-Soo K. et al. (2022) Knowledge spillovers and patent citations: trends in geographic localization, Economics of Innovation and New Technology.

- Peizhen J. et al. (2022) The power of innovation diffusion: How patent transfer affects urban innovation quality, Journal of Business Research.

- Piva, M. et al. (2022) The productivity impact of short-term labor mobility across industries. Small Business Economics.

- Zhang, M., Mohnen, P. (2022) R&D, innovation and firm survival in Chinese manufacturing, 2000–2006. Eurasian Business Review.

2. Some info on industries firms belong to could be relevant. Indeed, the (successful) patenting activity is heterogeneous among sectors, therefore some discussion on sectoral composition of the sample might be useful to the reader.

3. Indeed, one of the main determinants of patenting (in the “Knowledge Production Function” perspective) is R&D expenditure (or intensity). I would have expected R&D among the main regressors. However, I buy the recall at R&D in the last Section of the paper. It is quite convincing.

4. Equation (23) contains a typo: it should be Piut and not Pict

Author Response

The paper is very well-rooted and structured. The research question is quite original and results are consistent and well-discussed. I only have minor issues aimed at reinforcing literature review and better clarifying some dimensions.

1. More literature on patents and role of mobility might be of help. See

-Aghion P. et al. (2015) Patent rights, product market reforms, and innovation. Journal of Economic Growth;

- Cappelli R. et al. (2019) Inventor mobility and productivity in Italian regions, Regional Studies;

-Hyuk-Soo K. et al. (2022) Knowledge spillovers and patent citations: trends in geographic localization, Economics of Innovation and New Technology.

- Peizhen J. et al. (2022) The power of innovation diffusion: How patent transfer affects urban innovation quality, Journal of Business Research.

- Piva, M. et al. (2022) The productivity impact of short-term labor mobility across industries. Small Business Economics.

- Zhang, M., Mohnen, P. (2022) R&D, innovation and firm survival in Chinese manufacturing, 2000–2006. Eurasian Business Review.

Author Reply: Really thank you for your recommendation. We have updated some of the old references based in your recommendation and other newly references, shown in the manuscript.

 

2. Some info on industries firms belong to could be relevant. Indeed, the (successful) patenting activity is heterogeneous among sectors, therefore some discussion on sectoral composition of the sample might be useful to the reader.

Author Reply: Really thank you for your recommendation. It is indeed that patenting activity is heterogeneous among sectors, so we have discussed it in the heterogeneous section, which focus on heterogeneous among sectors based on the update speed of technology, it shows that high velocity technologies are more sensitive to time saving and efficiency improvements and are therefore more affected by the opening of HSR, compared to low velocity technologies.

 

3. Indeed, one of the main determinants of patenting (in the “Knowledge Production Function” perspective) is R&D expenditure (or intensity). I would have expected R&D among the main regressors. However, I buy the recall at R&D in the last Section of the paper. It is quite convincing.

Author Reply: Really thank you for your recommendation. We have used the variable of R&D intensity to capture the effect of HSR on firm innovation in section of resource allocation effect, and these results indeed quite convincing.

4. Equation (23) contains a typo: it should be Piut and not Pict

Author Reply: Really thank you for your recommendation. We have revised this mistake.

 

Reviewer 3 Report

The paper is well written. I must mention that I was not familiar with the formulas. Perhaps authors can consider including limitations of the study.

Author Response

The paper is well written. I must mention that I was not familiar with the formulas. Perhaps authors can consider including limitations of the study.

Author Reply: Really thank you for your recommendation. We have revised the limitation in the section of conclusions

 

Reviewer 4 Report

A detailed file is attached.

Comments for author File: Comments.pdf

Author Response

The influencing mechanism of high-speed rail on innovation: 2 Firm-level evidence from China

Topic: The topic is appropriate, coving all the variables.

Abstract 1. The abstract is well-written and attracts readers. However, some structural changes can make it more attractive. The author should start the abstract with the objective of the study. Then the importance or background of the study should be given. The methodology should be given in detail. After methodology, the results should be discussed and, in the end, 2-3 implications can enhance the attractiveness of the research.

Author Reply: Really thank you for your recommendation. We have revised the abstract based on your recommendation and the style of the journal of sustainability, shown as following:

There is an urgent need to change the economic development mode from “resources driven” to “innovation driven” with the stagnation of the economy in China. Most existing research on the effect of high-speed rail (HSR) on firm innovation, but there is a lack of theoretical support and empirical evidence of firm innovation through knowledge spillover. This study introduces HSR as a cost coefficient to the classical heterogeneous firm model to construct a theoretical framework to determine the impact of HSR on firms’ innovation output. By matching the data of listed firms with the data of prefecture-level cities, the general difference-in-differences (DID) method is used to explore the impact of HSR on firm innovation and its mechanism. The research shows that the construction of HSR has a significant effect on the number of applied patent and authorized patents of firms and that there is a marginal increasing trend relating to the density and timing of HSR. The study found that in peripheral cities, firms in industries with rapid technological advances and highly innovative behaviors benefit more from HSR. HSR is associated with knowledge spillover within and between central and peripheral cities. It also has a heterogeneous sorting effect bounded by city size that promotes highly educated talent and the innovative output of firms that becomes significant only after the population size of a city reaches a certain threshold. HSR stimulates firm innovation mainly by improving the effect of firm resource allocation, promoting the spillover effect of innovation due to the flow and aggregation of resources, and increasing the scale effect of market expansion. Therefore, when designing innovation policies, the role of improving the construction of transportation to increase the frequency of face-to-face communication should be included, thus promoting the flow of knowledge and research collaboration.

 

Keywords: Appropriate

Author Reply: Really thank you for your positive comments.

 

Introduction 1. In the introduction section, the author should give detail about the gap(s) in the literature that this study will fill, the objectives of the study, and then provide a breakdown of the current manuscript. Currently, the background is well presented but only one gap is given followed by the objectives.

Author Reply: Really thank you for your recommendation. We have revised the introduction section, which concludes past literatures, and suggest the gap and provide our contribution to the literature.

 

2. It is also recommended to provide a brief introduction of the population of the study in this section.

Author Reply: Really thank you for your recommendation. This study focuses on firm innovation, so we do not take any attention on population, but in the mechanism section, we also explore the difference of employee’s education on firm innovation.

 

Literature Review

1. In the introduction section, statistics are given without any references. Provide references with all the statistics.

Author Reply: Really thank you for your recommendation. I have added the references for these statistics.

 

2. In the introduction section, the author should give detail about the gap(s) in the literature that this study will fill, the objectives of the study, and then provide a breakdown of the current manuscript. Currently, the background is well presented but only one gap is given followed by the objectives.

Author Reply: Really thank you for your recommendation. We have revised the introduction section, which concludes past literatures, and suggest the gap and provide our contribution to the literature.

 

3. It is also recommended to provide a brief introduction of the population of the study in this section.

Author Reply: Really thank you for your recommendation. This study focuses on firm innovation, so we do not take any attention on population, but in the mechanism section, we also explore the difference of employee’s education on firm innovation.

 

4. References provide are too old. Update the references in this section

Author Reply: Really thank you for your recommendation. We have updated some of the old references based in your recommendation and other newly references, shown in the manuscript.

 

Conceptual Model 1.

Add detail definitions, links among variables, and operational definition.

Author Reply: Really thank you for your recommendation. We have added detail definitions in part of the conceptual model and the empirical model.

 

Data and methods

1. Describe table 1 in detail just refereeing them doses not make any sense.

Author Reply: Really thank you for your recommendation. We have added detail description for table 1 regarding applied and authorized patents, shown in revised manuscript.

 

Results

1. Discuss all the tables and graphs in detail.

Author Reply: Really thank you for your recommendation. We have added detail discussion for all the tables and graphs, shown in revised manuscript.

 

2. Discussion should be limited to the variables of current research only. Some irrelevant variables/factors are also included by the authors.

Author Reply: Really thank you for your recommendation. We have deleted some discussion for the irrelevant variables/factors, which make reader more ease to follow our study.

 

Conclusions and policy implications

1. Add implications in detail. Currently, its underdeveloped.

Author Reply: Really thank you for your recommendation. We have highlighted the policy implication in the conclusion section, shown as following:

Further improving the construction of transportation to increase the frequency of face-to-face communication, thus promoting the flow of knowledge and research collaboration. Generally, each city should build a comprehensive and reasonable knowledge spillover mechanism, where the knowledge recipient should enhance the absorption capacity, so that the chain effect, imitation effect and communication effect of knowledge spillover can play a smoother role. In the context of the rapid development of high-speed lines for passenger, the knowledge spillover effect of HSR can be fully brought into play by optimizing the station layout of HSR network. It is need to consider the establishment of a “HSR city circle” centered on the nodes of HSR network, thus giving full play to the driving role of central cities in the innovation to non-central cities, effectively integrating the talent resources and innovation factors of different places, continually promoting the introduction of high-end talents and cross-regional technological cooperation, and promoting the collaborative innovation and linkage development of firm within the urban circle.

2.Update the references. Most of the references are too old.

Author Reply: Really thank you for your recommendation. We have updated some of the old references based in your recommendation and other newly references, shown in the manuscript.