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Effects of the Talent War on Urban Innovation in China: A Difference-in-Differences Analysis

Author

Listed:
  • Xiaoli Shi

    (Research Center for Local Fiscal Performance, College of Finance and Economics, Jimei University, Xiamen 361021, China)

  • Ying Chen

    (College of Finance and Economics, Jimei University, Xiamen 361021, China)

  • Menghan Xia

    (School of Applied Economics, Renmin University of China, Beijing 100872, China)

  • Yongli Zhang

    (School of Marxism, Jimei University, Xiamen 361021, China)

Abstract

Talent is an important strategic resource for regional economic development. Based on the background of “the talent war” that has broken out between various cities in recent years, this study empirically verified the influence of the talent policy on urban innovation in 277 prefecture-level cities in China from 2010 to 2019 using the multi-period difference-in-differences model. The results indicated that “the talent war” caused by the talent policy has positively influenced urban innovation, causing, for instance, a dramatic increase in the number of patents for inventions. Among the subsidy methods of “the talent war” policy, the employment and entrepreneurship subsidy had the greatest incentive effect on urban innovation, followed by the talent housing subsidy. Moreover, the “the talent war” policy exerted a positive impact on urban innovation by improving the innovation willingness of cities and the level of talent gathering. At present, “the talent war” cities have, to a certain extent, restrained the improvement of urban innovation in neighboring cities because of the siphon effect, resulting in the division of the regional labor market. A heterogeneity analysis showed that “the talent war” has significantly promoted substantive innovation and the development of coastal cities with a better business environment and a higher degree of intellectual property protection.

Suggested Citation

  • Xiaoli Shi & Ying Chen & Menghan Xia & Yongli Zhang, 2022. "Effects of the Talent War on Urban Innovation in China: A Difference-in-Differences Analysis," Land, MDPI, vol. 11(9), pages 1-22, September.
    • Handle: RePEc:gam:jlands:v:11:y:2022:i:9:p:1485-:d:906956
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    Cited by:

    1. Sike Liu & Wuyi Wang, 2023. "Research on the Generating Mechanism of Urban Talent Competitiveness Based QCA Method: A Configurational Analysis of 24 Chinese Cities," Sustainability, MDPI, vol. 15(7), pages 1-16, April.
    2. Runyuan Wang & Weiguang Cai & Hong Ren & Xianrui Ma, 2023. "Heterogeneous Effects of the Talent Competition on Urban Innovation in China: Evidence from Prefecture-Level Cities," Land, MDPI, vol. 12(3), pages 1-15, March.

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