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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.

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  • 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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    Cited by:

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    4. 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.
    5. Tara Vanli, 2024. "Can systemic governance of smart cities catalyse urban sustainability?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23327-23384, September.
    6. Shengsheng Li & Yuanyuan Wang & Hasan Dincer & Serhat Yuksel & Dongyao Yu, 2023. "The Effects of New Urbanization Pilot City Policies on Urban Innovation: Evidence from China," Sustainability, MDPI, vol. 15(14), pages 1-15, July.
    7. Zongcheng Xie & Xuanzhi Yang, 2025. "How Can the Business Environment Promote Urban Innovation and High-Quality Development?—A Qualitative Comparative Analysis Based on the Perspective of Configuration," Sustainability, MDPI, vol. 17(2), pages 1-21, January.
    8. Chen, Jun, 2023. "Mitigating nitrogen dioxide air pollution: The roles and effect of national smart city pilots in China," Energy, Elsevier, vol. 263(PA).
    9. Zhong, Changbiao & Zhang, Chao, 2024. "Can data elements enhance urban innovation? Evidence from China," China Economic Review, Elsevier, vol. 88(C).
    10. Daxin Gong & Xiaofan Shan, 2023. "How Does Smart City Construction Affect Urban–Rural Collaborative Development? A Quasi-Natural Experiment from Chinese Cities," Land, MDPI, vol. 12(8), pages 1-14, August.
    11. Xiaoli Jiang & Xue Han & Li Xue & Zhuo Yu & Shuo Wei & Hejun Xu, 2023. "How smart city building improved corporate performance: empirical evidence of China’s a-share listed companies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    12. Liu, Hongwei & Zhang, Aodi & Wu, Jie, 2023. "Can industrial transfer improve urban innovation efficiency?," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    13. 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.
    14. Lamei, Yin & Zhou, Yue & Shan, Liu, 2023. "Environmental efficiency, climate innovation, and resource rent in Chinaʼs SDGs: Insights from quantile regressions," Resources Policy, Elsevier, vol. 86(PA).
    15. Ali Cheshmehzangi & Tong Zou, 2024. "Literary Analysis of the Connection between Urban Innovations and Sustainable Development Goals (SDGs)," Sustainability, MDPI, vol. 16(15), pages 1-26, July.
    16. 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.
    17. Chong Lu & Xingyu Qian, 2024. "Unbound hukou and rebound innovation in urban China," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-12, December.
    18. 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.
    19. Eryu Zhang & Xiaoyu He & Peng Xiao, 2022. "Does Smart City Construction Decrease Urban Carbon Emission Intensity? Evidence from a Difference-in-Difference Estimation in China," Sustainability, MDPI, vol. 14(23), pages 1-16, December.
    20. Ma, Binfeng & Wang, Xiaofang, 2023. "How does green floating bond and financial sector readiness promote green economic growth evidence from China," Resources Policy, Elsevier, vol. 85(PB).
    21. 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).
    22. Mingbo Ji & Mengyun Jin & Lingyun Chen & Yuwei Liu & Yihao Tian, 2024. "Promoting Urban Innovation through Smart Cities: Evidence from a Quasi-Natural Experiment in China," Land, MDPI, vol. 13(3), pages 1-18, March.
    23. 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.
    24. Peng, Zihao & Huang, Yiqi & Liu, Luanhong & Xu, Wanli & Qian, Xihong, 2024. "How government digital attention alleviates enterprise financing constraints: An enterprise digitalization perspective," Finance Research Letters, Elsevier, vol. 67(PB).
    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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