Does Innovative City Pilot Policy Stimulate the Chinese Regional Innovation: An Application of DID Model

Muniba () and Baorong Yu ()
Additional contact information
Muniba: School of Insurance and Economics, University of International Business and Economics, Beijing 100029, China
Baorong Yu: School of Insurance and Economics, University of International Business and Economics, Beijing 100029, China

IJERPH, 2023, vol. 20, issue 2, 1-21

Abstract: Urban innovation has always been a research topic of scholars, but research focusing on the relationship between innovative city pilot policy and regional innovation is still relatively rare. The objective of this study is to examine the impact of the pilot policy on urban innovation convergence based on panel data in China from 2003 to 2016. The difference-in-differences (DID) method was used. First, we find that the pilot policy not only improves the innovation level of cities (basic effect) but also promotes innovation convergence among pilot cities (convergence effect). The convergence of scientific and technological personnel and financial technology investment are potential impact mechanisms. Second, compared with the basic effect, the convergence effect of the pilot policy has a time lag of three to five years. Regarding spatial spillover, the policy convergence effect is slightly smaller than the basic effect radius (although not robust). Finally, while the spillover effect caused by policy increases the innovation growth rate of surrounding cities more significantly, the basic and convergence effects are not significant in the western region. The results reveal the positive impact of the pilot policy on narrowing urban innovation gaps and highlight the risk of further marginalization of some cities. These findings contribute to accurately evaluating the regional innovation differences and provide an important policy implication for development strategy.

Keywords: innovative city pilot policy; regional innovation difference; innovation convergence; innovation dispersion; difference in difference (DID); China (search for similar items in EconPapers)
JEL-codes: I I1 I3 Q Q5 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://www.mdpi.com/1660-4601/20/2/1245/pdf (application/pdf)
https://www.mdpi.com/1660-4601/20/2/1245/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijerp:v:20:y:2023:i:2:p:1245-:d:1030834

Access Statistics for this article

IJERPH is currently edited by Ms. Jenna Liu

More articles in IJERPH from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().