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This paper examines the threshold effect of resource misallocation between specialization and technological innovation performance in the high-tech industry in China. Contrary to the existing literature, this paper applies the static panel threshold model to evaluate the threshold effect of industrial specialization on the innovation performance, including the single threshold effect and double threshold effect. The empirical results shed new light on the topic and signified that high-tech industry specialization has a nonlinear effect on innovation performance and the resource misallocation threshold. This paper unveils a novel, double threshold effect of resource misallocation between industrial specialization and innovation performance. Moreover, the twenty-eight regions in China are divided into three types according to a resource misallocation, which unfold the current situation of the resource misallocation in pharmaceutical manufacturing—providing directional guidance for structural reforms of the supply side of pharmaceutical manufacturing in various regions.

Resource Misallocation Threshold for High-Tech Industrial Specialization on Technological Innovation Performance for Pharmaceutical Manufacturing