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AI and robotics as drivers of China’s urban innovation

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  • Rodríguez-Pose, Andrés
  • You, Zhuoying

Abstract

Few studies have examined the economic consequences of deploying artificial intelligence (AI) and robotics in less-developed cities, where policies have often failed. To address this gap, we analyse a panel of 270 Chinese cities (2009–2019) using ordinary least squares (OLS), instrumental variable two-stage least squares (IV-2SLS) and quantile regression techniques. We find that AI and robotics significantly promote technological innovation in China, with especially pronounced implications for cities at or below the technological frontier. These technologies also enhance the returns to science and technology (S&T) investment. Its novelty lies in framing AI and robotics as policy substitutes and tools for narrowing innovation divides among Chinese cities.

Suggested Citation

  • Rodríguez-Pose, Andrés & You, Zhuoying, 2026. "AI and robotics as drivers of China’s urban innovation," LSE Research Online Documents on Economics 137040, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:137040
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    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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