IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-03122-1.html
   My bibliography  Save this article

Digital economy and urban innovation level: A quasi-natural experiment from the strategy of “Digital China”

Author

Listed:
  • Chong Zhang

    (Chongqing Technology and Business University
    Chongqing Technology and Business University)

  • Baoliu Liu

    (Beijing University of Technology
    Beijing University of Technology)

  • Yuhan Yang

    (Chongqing Technology and Business University)

Abstract

The digital economy is an essential engine of the innovation-driven development strategy and plays a valuable role in promoting the high-quality development of the regional economy. Based on the panel data of 286 cities in mainland China with the help of the digital economy strategic plans issued by local governments as a quasi-natural experiment, we use the multi-temporal double-difference (DID) method to examine the impact of the digital economy on the urban innovation level. Findings show that the digital economy can significantly improve the urban innovation level. After a series of robustness tests, such as parallel trend test, updating sample and period, and repeated placebo test, the innovation-driving effect generated by the development of the digital economy remains significant. Results of the mechanism analysis indicate that the digital economy enhances the level of innovation through upgrading industrial structures. In addition, we find through the heterogeneity test that the digital economy has a stronger effect on improving the quality of innovation. Meanwhile, the innovation output in the Middle Eastern region is more significantly affected by the “Digital China” strategy than the Western region. Therefore, we should accelerate the implementation of the local digital economy development strategy to realize the high-quality development of the regional economy.

Suggested Citation

  • Chong Zhang & Baoliu Liu & Yuhan Yang, 2024. "Digital economy and urban innovation level: A quasi-natural experiment from the strategy of “Digital China”," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03122-1
    DOI: 10.1057/s41599-024-03122-1
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-03122-1
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-03122-1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hui, Peng & Zhao, Hui & Liu, Desheng & Li, Ye, 2023. "How does digital finance affect regional innovation capacity? A spatial econometric analysis," Economic Modelling, Elsevier, vol. 122(C).
    2. Luo, Jigang & Wang, Zhen & Wu, Maohua, 2021. "Effect of place-based policies on the digital economy: Evidence from the Smart City Program in China," Journal of Asian Economics, Elsevier, vol. 77(C).
    3. Jin, Peizhen & Peng, Chong & Song, Malin, 2019. "Macroeconomic uncertainty, high-level innovation, and urban green development performance in China," China Economic Review, Elsevier, vol. 55(C), pages 1-18.
    4. Peng, Hui & Lu, Yaobin & Wang, Qunwei, 2023. "How does heterogeneous industrial agglomeration affect the total factor energy efficiency of China's digital economy," Energy, Elsevier, vol. 268(C).
    5. Davide Cantoni & Yuyu Chen & David Y. Yang & Noam Yuchtman & Y. Jane Zhang, 2017. "Curriculum and Ideology," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 338-392.
    6. Lau, Lawrence J., 2023. "The benefits and potential costs of a digital economy," Telecommunications Policy, Elsevier, vol. 47(8).
    7. Liu, Baoliu & Cifuentes-Faura, Javier & Ding, Chante Jian & Liu, Xiaoqian, 2023. "Toward carbon neutrality: How will environmental regulatory policies affect corporate green innovation?," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 1006-1020.
    8. Pil Sun Heo & Duk Hee Lee, 2019. "Evolution of the linkage structure of ICT industry and its role in the economic system: the case of Korea," Information Technology for Development, Taylor & Francis Journals, vol. 25(3), pages 424-454, July.
    9. Wang, Chang’an & Liu, Xiaoqian & Li, Han & Yang, Cunyi, 2023. "Analyzing the impact of low-carbon city pilot policy on enterprises' labor demand: Evidence from China," Energy Economics, Elsevier, vol. 124(C).
    10. Tao, Chang-Qi & Yi, Meng-Ying & Wang, Chang-Song, 2023. "Coupling coordination analysis and Spatiotemporal heterogeneity between data elements and green development in China," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1-15.
    11. Myovella, Godwin & Karacuka, Mehmet & Haucap, Justus, 2020. "Digitalization and economic growth: A comparative analysis of Sub-Saharan Africa and OECD economies," Telecommunications Policy, Elsevier, vol. 44(2).
    12. Luo, Yusen & Lu, Zhengnan & Wu, Chao, 2023. "Can internet development accelerate the green innovation efficiency convergence: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    13. Sun, Yanan & You, Xiaotong, 2023. "Do digital inclusive finance, innovation, and entrepreneurship activities stimulate vitality of the urban economy? Empirical evidence from the Yangtze River Delta, China," Technology in Society, Elsevier, vol. 72(C).
    14. Lee, Chien-Chiang & Wang, Chang-song, 2022. "Does natural resources matter for sustainable energy development in China: The role of technological progress," Resources Policy, Elsevier, vol. 79(C).
    15. Hal R. Varian, 2010. "Computer Mediated Transactions," American Economic Review, American Economic Association, vol. 100(2), pages 1-10, May.
    16. Song, Xiaoling & Yao, Yumeng & Wu, Xueke, 2023. "Digital finance, technological innovation, and carbon dioxide emissions," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 482-494.
    17. Zhang, Zhengyi & Jin, Jun & Li, Shijing & Zhang, Yuanmin, 2023. "Digital transformation of incumbent firms from the perspective of portfolios of innovation," Technology in Society, Elsevier, vol. 72(C).
    18. Clarysse, Bart & He, Vivianna Fang & Tucci, Christopher L., 2022. "How the Internet of Things reshapes the organization of innovation and entrepreneurship," Technovation, Elsevier, vol. 118(C).
    19. Liu, Xiaoqian & Cifuentes-Faura, Javier & Zhao, Shikuan & Wang, Long, 2023. "Government environmental attention and carbon emissions governance: Firm-level evidence from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 121-142.
    20. Liu, Jingling & Chen, Yanying & Liang, Feng Helen, 2023. "The effects of digital economy on breakthrough innovations: Evidence from Chinese listed companies," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    21. Zhao, Shuliang & Teng, Linjiao & Arkorful, Vincent Ekow & Hu, Hui, 2023. "Impacts of digital government on regional eco-innovation: Moderating role of dual environmental regulations," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    22. Davide Cantoni & Yuyu Chen & David Y. Yang & Noam Yuchtman & Y. Jane Zhang, 2017. "Curriculum and Ideology," Journal of Political Economy, University of Chicago Press, vol. 125(2), pages 338-392.
    23. Zhang, Liangliang & Tao, Yunqing & Nie, Cong, 2022. "Does broadband infrastructure boost firm productivity? Evidence from a quasi-natural experiment in China," Finance Research Letters, Elsevier, vol. 48(C).
    24. Liu, Yi & Zhao, Xuan & Liu, Yi & Kong, Fanjun, 2023. "The dynamic impact of digital economy on the green development of traditional manufacturing industry: Evidence from China," Economic Analysis and Policy, Elsevier, vol. 80(C), pages 143-160.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tian Zhang & Rong Zhang, 2024. "The spatial effect of low-carbon development of regional industries driven by the digital economy: evidence from Chinese cities," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bagues, Manuel & Roth, Christopher, 2020. "Interregional Contact and National Identity," CAGE Online Working Paper Series 526, Competitive Advantage in the Global Economy (CAGE).
    2. Gradstein, Mark & Justman, Moshe, 2019. "Immigration, Diversity and Growth," CEPR Discussion Papers 14008, C.E.P.R. Discussion Papers.
    3. Bautista, M. A. & González, F. & Martínez, L. R. & Muñoz, P. & Prem, M., 2020. "Chile’s Missing Students: Dictatorship, Higher Education and Social Mobility," Documentos de Trabajo 18163, Universidad del Rosario.
    4. Camarero Garcia, Sebastian, 2022. "Inequality of Educational Opportunities and the Role of Learning Intensity," Labour Economics, Elsevier, vol. 74(C).
    5. Tan, Xiujie & Xiao, Ziwei & Liu, Yishuang & Taghizadeh-Hesary, Farhad & Wang, Banban & Dong, Hanmin, 2022. "The effect of green credit policy on energy efficiency: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    6. Jain, Tarun & Mukhopadhyay, Abhiroop & Prakash, Nishith & Rakesh, Raghav, 2018. "Labor Market Effects of High School Science Majors in a High STEM Economy," IZA Discussion Papers 11908, Institute of Labor Economics (IZA).
    7. Yang, Jinghao & Chen, Siyu, 2023. "Corporate financialization, digitalization and green innovation: A panel investigation on Chinese listed firms," Innovation and Green Development, Elsevier, vol. 2(3).
    8. Ran Gu & Zenghua He, 2023. "Can Environmental Regulation Improve Labor Allocation Efficiency? Evidence from China’s New Environmental Protection Law," Sustainability, MDPI, vol. 15(7), pages 1-15, March.
    9. Diva Dhar & Tarun Jain & Seema Jayachandran, 2022. "Reshaping Adolescents' Gender Attitudes: Evidence from a School-Based Experiment in India," American Economic Review, American Economic Association, vol. 112(3), pages 899-927, March.
    10. Sha, Wenbiao, 2023. "The political impacts of land expropriation in China," Journal of Development Economics, Elsevier, vol. 160(C).
    11. Chen, Wei-Lin & Lin, Ming-Jen & Yang, Tzu-Ting, 2023. "Curriculum and national identity: Evidence from the 1997 curriculum reform in Taiwan," Journal of Development Economics, Elsevier, vol. 163(C).
    12. Dominic Rohner & Mathias Thoenig, 2021. "The Elusive Peace Dividend of Development Policy: From War Traps to Macro Complementarities," Annual Review of Economics, Annual Reviews, vol. 13(1), pages 111-131, August.
    13. repec:hal:spmain:info:hdl:2441/3jngk2o32k9hgasm59p1d3tmli is not listed on IDEAS
    14. Lu, Shengfeng & Chen, Sixia & Wang, Peigang, 2019. "Language barriers and health status of elderly migrants: Micro-evidence from China," China Economic Review, Elsevier, vol. 54(C), pages 94-112.
    15. Huichao Du & Yun Xiao & Liqiu Zhao, 2021. "Education and gender role attitudes," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(2), pages 475-513, April.
    16. Park, Hyungmin, 2023. "Developmental Dictatorship and Middle Class-driven Democratisation," The Warwick Economics Research Paper Series (TWERPS) 1485, University of Warwick, Department of Economics.
    17. Yi Chen & Yingfei Huang, 2020. "The power of the government: China's Family Planning Leading Group and the fertility decline of the 1970s," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 42(35), pages 985-1038.
    18. Becker, Sascha O. & Mukand, Sharun & Yotzov, Ivan, 2022. "Persecution, pogroms and genocide: A conceptual framework and new evidence," Explorations in Economic History, Elsevier, vol. 86(C).
    19. Jiayi Li & Shujun Ye & Shujuan Wang, 2023. "Spatial Network Analysis on the Coupling Coordination of Digital Finance and Technological Innovation," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    20. Anjali Adukia & Alex Eble & Emileigh Harrison & Hakizumwami Birali Runesha & Teodora Szasz, 2023. "What We Teach About Race and Gender: Representation in Images and Text of Children’s Books," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 138(4), pages 2225-2285.
    21. María Angelica Bautista & Felipe González & Luis R. Martínez & Pablo Munoz & Mounu Prem, 2018. "The Geography of Repression and Support for Democracy: Evidence from the Pinochet Dictatorship," Documentos de Trabajo 17007, Universidad del Rosario.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-03122-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.