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From Smart Cities to Smarter Economies: The Dynamics of Urban Technology and Enterprise Total Factor Productivity

Author

Listed:
  • Kai Qu

    (Yulin University)

  • Yapeng Zhang

    (Yulin University)

  • Xiaohui Fan

    (Yulin University)

Abstract

This paper evaluates the impact of the Smart City Pilot Program (SCPP) on enterprise total factor productivity (TFP) in China, using a robust analytical framework and the difference-in-differences methodology. The study leverages data from 2010 to 2019 across various Chinese cities that have implemented SCPP initiatives aimed at fostering urban technological integration and innovation. Our findings indicate that SCPP significantly enhances TFP within enterprises, particularly through the mechanisms of technological spillovers, improved urban infrastructure, and government policy support. The program has notably spurred innovation and efficiency in resource allocation, contributing to the sustainable growth of enterprises involved in or supported by these urban projects. By systematically analyzing the interplay between public policy and enterprise productivity, the study sheds light on the transformative potential of smart cities within the knowledge economy framework. Additionally, the research discusses the role of policy adaptability and regional variations in achieving optimal outcomes, providing valuable insights for policymakers and urban planners aiming to replicate this success in other contexts. This paper not only advances the theoretical understanding of how technology-driven urban policies can catalyze economic productivity but also offers practical implications for enhancing the efficacy of smart city programs globally.

Suggested Citation

  • Kai Qu & Yapeng Zhang & Xiaohui Fan, 2025. "From Smart Cities to Smarter Economies: The Dynamics of Urban Technology and Enterprise Total Factor Productivity," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 4747-4781, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-02145-y
    DOI: 10.1007/s13132-024-02145-y
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