Proximity effect, preferential attachment and path dependence in inter-regional network: a case of China’s technology transaction

We analyze whether proximity effect, preferential attachment and path dependence or three “P” mechanisms would concur within the evolutionary process of inter-regional network. Using a unique database of China’s technology transaction between regions, we show that proximity effect, preferential attachment and path dependence have coexisted in the evolutionary process of China’s inter-regional network of technology transactions. In particular, the inter-regional relations positively and significantly correlate with the geographical and economic proximity matrix, all regions’ three centrality values in current year positively and significantly correlate with their centrality in the last two years, and the inter-regional relations in current year positively and significantly correlate with own relations in last two years. This paper contributes to the existing literature by identifying three evolutionary mechanisms of inter-regional network. An interpretation is that the evolution process of inter-regional network is a very complex process, and one mechanism such as geographical proximity from the perspective of economic geography or preferential attachment from the perspective of network science only could explain a part of the process.