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Impact and mechanism analysis of smart city policy on urban innovation: Evidence from China

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  • Wang, Jinxiu
  • Deng, Kun

Abstract

Innovation is a key source of economic development, and arguably the driving engine of urban economic development. Based on a quasi-natural experiment of national smart city construction, this paper investigates the urban innovation effect of policy using the multi-phase differences-in-differences model. The results show that implementing a smart city construction policy improves the urban innovation output, and that the effect on the degree of urban innovation was relatively significant after implementation. A further heterogeneity analysis showed that smart city development in different regions has different impacts on urban innovation; specifically, compared with the central and western regions, smart city construction in eastern China was seen to have a higher impact on urban innovation output. Moreover, the findings also demonstrated that smart city construction policies have different impacts on urban innovation output in cities of different urban scales. Namely, applying the smart city construction policy to medium-sized cities will exert a positive effect on urban innovation. This study aims to contribute to the promotion of urban development, the improvement of urban innovation capacity.

Suggested Citation

  • Wang, Jinxiu & Deng, Kun, 2022. "Impact and mechanism analysis of smart city policy on urban innovation: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 574-587.
    • Handle: RePEc:eee:ecanpo:v:73:y:2022:i:c:p:574-587
    DOI: 10.1016/j.eap.2021.12.006
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    2. Eryu Zhang & Xiaoyu He & Peng Xiao, 2022. "Does Smart City Construction Decrease Urban Carbon Emission Intensity? Evidence from a Difference-in-Difference Estimation in China," Sustainability, MDPI, vol. 14(23), pages 1-16, December.
    3. Shengsheng Li & Yuanyuan Wang & Hasan Dincer & Serhat Yuksel & Dongyao Yu, 2023. "The Effects of New Urbanization Pilot City Policies on Urban Innovation: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-15, July.
    4. Daxin Gong & Xiaofan Shan, 2023. "How Does Smart City Construction Affect Urban–Rural Collaborative Development? A Quasi-Natural Experiment from Chinese Cities," Land, MDPI, vol. 12(8), pages 1-14, August.
    5. Xiaoli Jiang & Xue Han & Li Xue & Zhuo Yu & Shuo Wei & Hejun Xu, 2023. "How smart city building improved corporate performance: empirical evidence of China’s a-share listed companies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    6. Ma, Binfeng & Wang, Xiaofang, 2023. "How does green floating bond and financial sector readiness promote green economic growth evidence from China," Resources Policy, Elsevier, vol. 85(PB).
    7. Mingbo Ji & Mengyun Jin & Lingyun Chen & Yuwei Liu & Yihao Tian, 2024. "Promoting Urban Innovation through Smart Cities: Evidence from a Quasi-Natural Experiment in China," Land, MDPI, vol. 13(3), pages 1-18, March.
    8. Yan, Zheming & Sun, Zao & Shi, Rui & Zhao, Minjuan, 2023. "Smart city and green development: Empirical evidence from the perspective of green technological innovation," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    9. Yang, Zhenbing & Zhao, Ziyi & Shao, Shuai & Yang, Lili, 2023. "Carbon regulation and enterprise investment: Evidence from China," Energy Economics, Elsevier, vol. 128(C).
    10. Rongjie Lv & Hao Gao, 2023. "Effects of smart city construction on employment: mechanism and evidence from China," Empirical Economics, Springer, vol. 65(5), pages 2393-2425, November.
    11. Chen, Jun, 2023. "Mitigating nitrogen dioxide air pollution: The roles and effect of national smart city pilots in China," Energy, Elsevier, vol. 263(PA).
    12. Liu, Hongwei & Zhang, Aodi & Wu, Jie, 2023. "Can industrial transfer improve urban innovation efficiency?," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    13. Shuxing Chen & Xu Zhang & Wei Wang & Yunhao Liang & Wei He & Zhixiong Tan, 2024. "The Effect of Smart City Policies on City Innovation—A Quasi-Natural Experiment from the Smart City Pilot Cities in China," Sustainability, MDPI, vol. 16(18), pages 1-20, September.
    14. Lamei, Yin & Zhou, Yue & Shan, Liu, 2023. "Environmental efficiency, climate innovation, and resource rent in Chinaʼs SDGs: Insights from quantile regressions," Resources Policy, Elsevier, vol. 86(PA).
    15. Ali Cheshmehzangi & Tong Zou, 2024. "Literary Analysis of the Connection between Urban Innovations and Sustainable Development Goals (SDGs)," Sustainability, MDPI, vol. 16(15), pages 1-26, July.

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