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Does broadband infrastructure promote urban innovation? Evidence from “Broadband China” demonstration policy

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  • Wang, Chong
  • Wang, Lei

Abstract

Broadband infrastructure plays a key role in supporting innovation. This paper takes the “Broadband China” demonstration policy as a quasi-natural experiment, adopts the data of 284 cities and multi-phase Difference-in-Differences (DID) approach to explore the impact of broadband infrastructure on urban innovation. We find that broadband infrastructure significantly boosts urban innovation, the increase of internet penetration rate and the development of information technology industry are the two influence channels. Heterogeneity tests show that the boosting effect of broadband infrastructure on innovation are stronger in eastern cities, large cities, key cities and cities with better educational resources. We also find that broadband infrastructure plays a stronger role in promoting radical innovation than incremental innovation, and the “Broadband China” demonstration policy produces a positive spillover effect on nearby cities' innovation.

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  • Wang, Chong & Wang, Lei, 2024. "Does broadband infrastructure promote urban innovation? Evidence from “Broadband China” demonstration policy," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 349-362.
    • Handle: RePEc:eee:streco:v:69:y:2024:i:c:p:349-362
    DOI: 10.1016/j.strueco.2024.01.005
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    2. Zihao Lin, 2024. "Can digital transformation curtail carbon emissions? Evidence from a quasi-natural experiment," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.

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    More about this item

    Keywords

    Broadband infrastructure; “Broadband China”; Urban innovation; Multi-phase DID; Spatial spillover effect;
    All these keywords.

    JEL classification:

    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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