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Given the correlation of economic activities between regions is becoming stronger, this chapter conducts an empirical study of the convergence of real gross domestic product (GDP) per capita of 31 Chinese provinces and municipalities during the period 2001–15, and explores the impacts of innovation capability on economic convergence, using the inverse centroid distance among different regions as a weight matrix in a spatial econometrics model. The results show that: 1) after considering the spatial effect, China’s regional economic development has both conditional convergence and absolute convergence; 2) in recent years, the trend of China’s regional economic development convergence is becoming more obvious; and 3) after regional innovation capacity is taken into account, the speed of convergence of China’s regional economy will deteriorate.

Empirical Study of Regional Innovation Capability and Economic Convergence in China