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Regional Integration, University Resources, and Firm Performance: Evidence from the Yangtze River Delta in China
Journal article   Open access   Peer reviewed

Regional Integration, University Resources, and Firm Performance: Evidence from the Yangtze River Delta in China

Jiawen Zhou, Fei Peng, Qi Chen and Sajid Anwar
Economies, Vol.14(4), pp.1-20
2026
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Published Version Open Access CC BY V4.0

Abstract

universities innovation resources enterprise performance science and technology corridor regional development
Universities play a critical role in knowledge creation and technological innovation, serving as key drivers of regional development. However, existing research has paid limited attention to the mechanisms through which university innovation inputs translate into firm-level performance, particularly in the context of science and technology corridors in emerging economies. This study investigates how university innovation resources affect enterprise performance in the G60 Science and Technology Corridor within China’s Yangtze River Delta, one of the country’s most dynamic innovation regions. Using a panel dataset of 55 universities across nine cities from 2008 to 2017, we employ spatial analysis and fixed-effects panel regression models to examine the relationship between university innovation inputs and firm performance and further explore the mediating roles of local human capital and firm R&D investment. The results show that university innovation inputs significantly enhance enterprise performance, although excessive human resource inputs exhibit a negative effect on both short-term and long-term outcomes. Local human capital and firm R&D investment serve as key mediating mechanisms, with input and output resources influencing enterprise performance through distinct pathways. Heterogeneity analysis reveals that non-state-owned enterprises and small- and medium-sized enterprises derive greater long-term benefits from university resources. These findings contribute to the literature by clarifying the conceptual distinction between university innovation inputs and outputs, and by demonstrating the micro-level mechanisms—R&D investment and human capital—through which university-generated knowledge affects firm performance. The results also provide empirical evidence from an emerging economic context, extending the applicability of knowledge spillover and absorptive capacity theories. Policy implications include optimizing university human resource allocation, strengthening university–enterprise collaboration, and providing targeted support for non-state-owned enterprises and SMEs. Future research may extend the analysis to include institutional factors and university heterogeneity.

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