Opening public data and entrepreneurial activity: evidence from China

An abundance of information can reduce uncertainty about the risk of failure, thereby promoting entrepreneurial activities. Therefore, how can potential entrepreneurs receive additional information? This study explores the role of Open Government Data (OGD) by leveraging a quasi-natural experiment involving the gradual establishment of public open-data platforms across 283 Chinese cities from 2008 to 2021. Using a staggered difference-in-differences approach, our findings reveal that OGD significantly boosts urban entrepreneurial activities, particularly in the service sectors and in eastern and large cities. A mechanism analysis demonstrates that attracting venture capital, promoting talent agglomeration, and reducing transaction costs are three primary channels through which OGD enhances urban entrepreneurial vitality. Further analysis indicates that the business environment positively moderates the relationship between OGD and entrepreneurial activities. These results provide compelling evidence from the perspective of entrepreneurship on how data standardization and transparency can promote economic growth while also underscoring the importance of government openness.