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Ecological innovation effect of broadband network infrastructure: Evidence from China

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  • Meitong Lu
  • Qi Luo
  • Dawei Feng

Abstract

This study investigates the impact of Broadband Network Infrastructure (BNI) on urban ecological innovation (EI). The implementation of China's “Broadband China” Demonstration City (BCDC) construction policy provides a quasi‐natural experiment for examining the causal effect of BNI on urban EI. Using the difference‐in‐differences method, we find that BNI significantly increases the number of green patent applications in local cities, and that the effect is increasing over time. Examination of the underlying mechanism reveals that BNI promotes urban EI through stimulating entrepreneurship, improving human capital level, and attracting investment agglomeration. This paper contributes to the understanding of why significant innovation frequently occurs in places with relatively perfect infrastructure, such as networks.

Suggested Citation

  • Meitong Lu & Qi Luo & Dawei Feng, 2023. "Ecological innovation effect of broadband network infrastructure: Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 1978-1994, June.
    • Handle: RePEc:wly:mgtdec:v:44:y:2023:i:4:p:1978-1994
    DOI: 10.1002/mde.3794
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