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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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    14. 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.
    15. Chen, Jun, 2023. "Mitigating nitrogen dioxide air pollution: The roles and effect of national smart city pilots in China," Energy, Elsevier, vol. 263(PA).
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    17. 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.
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    20. Qiu, Jun & Lyu, Ping & Tian, Min, 2024. "Do talent housing policies foster regional innovation? An analysis based on labor force heterogeneity," Economic Analysis and Policy, Elsevier, vol. 83(C), pages 150-164.
    21. Long Qian & Xiaolin Xu & Yunjie Zhou & Ying Sun & Duoliang Ma, 2023. "Carbon Emission Reduction Effects of the Smart City Pilot Policy in China," Sustainability, MDPI, vol. 15(6), pages 1-24, March.
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    23. Cui, Shuhui & Li, Guangqin & Liu, Jiashu, 2024. "Can the construction of smart cities promote the capital allocation efficiency: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 208(C).
    24. Jiayu Ou & Zhiqiang Zheng & Xiaojing Ou & Naili Zhang, 2024. "Smart City Construction, Artificial Intelligence Development, and the Quality of Export Products: A Study Based on Micro-Level Data of Chinese Enterprises," Sustainability, MDPI, vol. 16(19), pages 1-25, October.
    25. Cui, Jingjing & Zhang, Qi & Wang, Qianyu, 2024. "Investigating the interactive effects between venture capital and urban innovation capabilities: New evidence from a spatial simultaneous equations model," Finance Research Letters, Elsevier, vol. 67(PB).

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