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The Impact of Innovative Industrial Cluster Policy on Regional Innovation: Evidence from a Quasi-Natural Experiment in China

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  • Huan Wang
  • Jinhua Guo
  • Gengxin Sun

Abstract

As important carriers of local innovation activities, innovative industrial clusters are attracting increasing attention. Therefore, several countries have started promotion policies for innovative industrial clusters. However, there are few empirical studies on relevant policies. This paper investigates the impact of China’s “innovative industrial cluster pilot†(IICP) policy on regional innovation. Taking the implementation of IICP policy as a quasi-natural experiment and using the panel data of 266 prefecture-level cities in China in 2008-2019, this paper provides strong evidence that IICP policy promotes regional innovation. The conclusion still holds after a battery of robustness checks. The heterogeneity test shows that the promoting effect of IICP policy on innovation is more significant in central and western region than in eastern region. Moreover, the lower the city administrative level and the lower the dependence on natural resource, the more prominent the innovation effect of IICP policy. Further, the mechanism test shows that the IICP policy can promote regional innovation indirectly by strengthening government support for innovation and attracting the agglomeration of science and technological talents, but the mediation effect of industrial structure has not been verified.

Suggested Citation

  • Huan Wang & Jinhua Guo & Gengxin Sun, 2021. "The Impact of Innovative Industrial Cluster Policy on Regional Innovation: Evidence from a Quasi-Natural Experiment in China," Discrete Dynamics in Nature and Society, Hindawi, vol. 2021, pages 1-12, December.
    • Handle: RePEc:hin:jnddns:4717539
    DOI: 10.1155/2021/4717539
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