IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i12p5314-d1674809.html
   My bibliography  Save this article

Government Public Services and Regional Digital Transformation for Sustainable Development: An Innovation Ecosystem Perspective

Author

Listed:
  • Siyi Pu

    (School of Landscape Architecture and Architecture, Zhejiang Agriculture and Forestry University, Lin’an, Hangzhou 311300, China)

  • Yitong Ou

    (School of Management, Zhejiang University, Xihu, Hangzhou 310058, China)

  • Ou Bai

    (School of Landscape Architecture and Architecture, Zhejiang Agriculture and Forestry University, Lin’an, Hangzhou 311300, China)

Abstract

Local governments have become key agents in advancing regional digital transformation in China. Drawing on a panel dataset of 30 provinces from 2009 to 2022, this study adopts an innovation ecosystem perspective. It explores how public service delivery interacts with market development, higher education institutions, and social entrepreneurship to support sustainable digital development. The results show that local public services have a strong positive impact on digital transformation. This effect is even greater when supported by other ecosystem components. These findings highlight the value of system-level collaboration in promoting inclusive, resilient, and sustainable regional growth. Rather than introducing a new theory, this study provides practical, context-specific evidence on how local governments and innovation ecosystems work together to support China’s digital transformation and long-term sustainability goals.

Suggested Citation

  • Siyi Pu & Yitong Ou & Ou Bai, 2025. "Government Public Services and Regional Digital Transformation for Sustainable Development: An Innovation Ecosystem Perspective," Sustainability, MDPI, vol. 17(12), pages 1-19, June.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:12:p:5314-:d:1674809
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/12/5314/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/12/5314/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Etzkowitz, Henry & Leydesdorff, Loet, 2000. "The dynamics of innovation: from National Systems and "Mode 2" to a Triple Helix of university-industry-government relations," Research Policy, Elsevier, vol. 29(2), pages 109-123, February.
    2. Bruno, Giuseppe & Diglio, Antonio & Piccolo, Carmela & Pipicelli, Eduardo, 2023. "A reduced Composite Indicator for Digital Divide measurement at the regional level: An application to the Digital Economy and Society Index (DESI)," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    3. Appio, Francesco Paolo & Lima, Marcos & Paroutis, Sotirios, 2019. "Understanding Smart Cities: Innovation ecosystems, technological advancements, and societal challenges," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 1-14.
    4. Inhye Yoo & Chan-Goo Yi, 2022. "Economic Innovation Caused by Digital Transformation and Impact on Social Systems," Sustainability, MDPI, vol. 14(5), pages 1-18, February.
    5. Mohammed Alojail & Surbhi Bhatia Khan, 2023. "Impact of Digital Transformation toward Sustainable Development," Sustainability, MDPI, vol. 15(20), pages 1-20, October.
    6. Swen Nadkarni & Reinhard Prügl, 2021. "Digital transformation: a review, synthesis and opportunities for future research," Management Review Quarterly, Springer, vol. 71(2), pages 233-341, April.
    7. Gabriel Chodorow-Reich, 2019. "Geographic Cross-Sectional Fiscal Spending Multipliers: What Have We Learned?," American Economic Journal: Economic Policy, American Economic Association, vol. 11(2), pages 1-34, May.
    8. Appio, Francesco Paolo & Lima, Marcos & Paroutis, Sotirios, 2019. "Understanding Smart Cities: Innovation ecosystems, technological advancements, and societal challenges," Technological Forecasting and Social Change, Elsevier, vol. 142(C), pages 1-14.
    9. Ben Spigel, 2017. "The Relational Organization of Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 41(1), pages 49-72, January.
    10. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    11. Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
    12. Yanzhang Gu & Longying Hu & Hongjin Zhang & Chenxuan Hou, 2021. "Innovation Ecosystem Research: Emerging Trends and Future Research," Sustainability, MDPI, vol. 13(20), pages 1-21, October.
    13. Chun-Liang Chen & Yao-Chin Lin & Wei-Hung Chen & Cheng-Fu Chao & Henry Pandia, 2021. "Role of Government to Enhance Digital Transformation in Small Service Business," Sustainability, MDPI, vol. 13(3), pages 1-24, January.
    14. Felin, Teppo & Zenger, Todd R., 2014. "Closed or open innovation? Problem solving and the governance choice," Research Policy, Elsevier, vol. 43(5), pages 914-925.
    15. Sascha Kraus & Paul Jones & Norbert Kailer & Alexandra Weinmann & Nuria Chaparro-Banegas & Norat Roig-Tierno, 2021. "Digital Transformation: An Overview of the Current State of the Art of Research," SAGE Open, , vol. 11(3), pages 21582440211, September.
    16. Gaglio, Cyrielle & Kraemer-Mbula, Erika & Lorenz, Edward, 2022. "The effects of digital transformation on innovation and productivity: Firm-level evidence of South African manufacturing micro and small enterprises," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    17. Teixeira, Aurora A.C. & Queirós, Anabela S.S., 2016. "Economic growth, human capital and structural change: A dynamic panel data analysis," Research Policy, Elsevier, vol. 45(8), pages 1636-1648.
    18. Klaus E Meyer & Mike W Peng, 2016. "Theoretical foundations of emerging economy business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(1), pages 3-22, January.
    19. Filipe Santos, 2012. "A Positive Theory of Social Entrepreneurship," Journal of Business Ethics, Springer, vol. 111(3), pages 335-351, December.
    20. Nee, Victor & Opper, Sonja, 2012. "Capitalism from Below: Markets and Institutional Change in China," Economics Books, Harvard University Press, number 9780674050204, march.
    21. Granstrand, Ove & Holgersson, Marcus, 2020. "Innovation ecosystems: A conceptual review and a new definition," Technovation, Elsevier, vol. 90.
    22. Oh, Deog-Seong & Phillips, Fred & Park, Sehee & Lee, Eunghyun, 2016. "Innovation ecosystems: A critical examination," Technovation, Elsevier, vol. 54(C), pages 1-6.
    23. Feldman, Maryann P, 2001. "The Entrepreneurial Event Revisited: Firm Formation in a Regional Context," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 10(4), pages 861-891, December.
    24. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    25. Jianying Xiao & Lixin Han & Hui Zhang, 2022. "Exploring Driving Factors of Digital Transformation among Local Governments: Foundations for Smart City Construction in China," Sustainability, MDPI, vol. 14(22), pages 1-16, November.
    26. Islam, Asif, 2015. "Entrepreneurship and the Allocation of Government Spending Under Imperfect Markets," World Development, Elsevier, vol. 70(C), pages 108-121.
    27. Jiaojiao Liu & Shuai Liu & Xiaolin Xu & Qi Zou, 2022. "Can Digital Transformation Promote the Rapid Recovery of Cities from the COVID-19 Epidemic? An Empirical Analysis from Chinese Cities," IJERPH, MDPI, vol. 19(6), pages 1-14, March.
    28. Wei, Yifan, 2022. "Reprint of: Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(9).
    Full references (including those not matched with items on IDEAS)

    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. Wei, Yifan, 2022. "Reprint of: Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(9).
    2. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    3. Shi, Xianwei & Liang, Xingkun & Luo, Yining, 2023. "Unpacking the intellectual structure of ecosystem research in innovation studies," Research Policy, Elsevier, vol. 52(6).
    4. Xiaoran Zheng & Yuzhuo Cai, 2022. "Transforming Innovation Systems into Innovation Ecosystems: The Role of Public Policy," Sustainability, MDPI, vol. 14(12), pages 1-26, June.
    5. Michele Modina & Francesco Capalbo & Marco Sorrentino & Gabriele Ianiro & Muhammad Fayaz Khan, 2024. "Innovation ecosystems: a comparison between university spin-off firms and innovative start-ups. Evidence from Italy," International Entrepreneurship and Management Journal, Springer, vol. 20(2), pages 575-605, June.
    6. Meek, Shelby Renee & Tietz, Matthias A., 2022. "Entrepreneurship and subjective vs objective institutional performance: A decade of US hospital data," Research Policy, Elsevier, vol. 51(9).
    7. Federico Caviggioli & Alessandra Colombelli & Antonio De Marco & Giuseppe Scellato & Elisa Ughetto, 2023. "Co-evolution patterns of university patenting and technological specialization in European regions," The Journal of Technology Transfer, Springer, vol. 48(1), pages 216-239, February.
    8. Annita Nugent & Ho Fai Chan & Uwe Dulleck, 2022. "Government funding of university-industry collaboration: exploring the impact of targeted funding on university patent activity," Scientometrics, Springer;Akadémiai Kiadó, vol. 127(1), pages 29-73, January.
    9. Gomes, Leonardo Augusto de Vasconcelos & Flechas, Ximena Alejandra & Facin, Ana Lucia Figueiredo & Borini, Felipe Mendes, 2021. "Ecosystem management: Past achievements and future promises," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    10. Jeremy L. Hall & Michael E. Howell-Moroney, 2012. "Poverty, Innovation Capacity, and State Economic Development in the Knowledge Economy: Evidence from the U.S," Growth and Change, Wiley Blackwell, vol. 43(2), pages 228-251, June.
    11. Coad, Alex & Srhoj, Stjepan, 2023. "Entrepreneurial ecosystems and regional persistence of high growth firms: A ‘broken clock’ critique," Research Policy, Elsevier, vol. 52(6).
    12. De Silva, Muthu & Gokhberg, Leonid & Meissner, Dirk & Russo, Margherita, 2021. "Addressing societal challenges through the simultaneous generation of social and business values: A conceptual framework for science-based co-creation," Technovation, Elsevier, vol. 104(C).
    13. Ginevra Balletto & Mara Ladu & Federico Camerin & Emilio Ghiani & Jacopo Torriti, 2022. "More Circular City in the Energy and Ecological Transition: A Methodological Approach to Sustainable Urban Regeneration," Sustainability, MDPI, vol. 14(22), pages 1-18, November.
    14. Stephens, Simon & McLaughlin, Christopher & Ryan, Leah & Catena, Manuel & Bonner, Aisling, 2022. "Entrepreneurial ecosystems: Multiple domains, dimensions and relationships," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    15. Francesco Gerli & Veronica Chiodo & Irene Bengo, 2020. "Technology Transfer for Social Entrepreneurship: Designing Problem-Oriented Innovation Ecosystems," Sustainability, MDPI, vol. 13(1), pages 1-19, December.
    16. Dong, Caiting & Liu, Xielin & Tang, Fangcheng & Qiu, Shumin, 2023. "How upstream innovativeness of ecosystems affects firms' innovation: The contingent role of absorptive capacity and upstream dependence," Technovation, Elsevier, vol. 124(C).
    17. Kamilla Kohn Rådberg & Hans Löfsten, 2023. "Developing a knowledge ecosystem for large-scale research infrastructure," The Journal of Technology Transfer, Springer, vol. 48(1), pages 441-467, February.
    18. Bo Liu & Yun-Fei Shao & Guowei Liu & Debing Ni, 2022. "An Evolutionary Analysis of Relational Governance in an Innovation Ecosystem," SAGE Open, , vol. 12(2), pages 21582440221, April.
    19. Bennett, Daniel L., 2019. "Infrastructure investments and entrepreneurial dynamism in the U.S," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    20. Feldman, Maryann & Fleming, Lee & Heaton, Sohvi & Desai, Sameeksha & Teece, David, 2022. "Uncommon methods and metrics for local entrepreneurial ecosystems," Research Policy, Elsevier, vol. 51(9).

    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:gam:jsusta:v:17:y:2025:i:12:p:5314-:d:1674809. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.