The Effect of Smart City Policies on City Innovation—A Quasi-Natural Experiment from the Smart City Pilot Cities in China

Shuxing Chen, Xu Zhang, Wei Wang, Yunhao Liang, Wei He and Zhixiong Tan ()
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Shuxing Chen: School of Economics, Southwestern University of Finance and Economics, Chengdu 611130, China
Xu Zhang: School of Business Administration, Southwestern University of Finance and Economics, Chengdu 611130, China
Wei Wang: School of Economics and Business Administration, Chongqing University, Chongqing 400044, China
Yunhao Liang: Sichuan University Pittsburgh Institute, Chengdu 610017, China
Wei He: School of Public Policy and Administration, Chongqing University, Chongqing 400044, China
Zhixiong Tan: School of Public Policy and Administration, Chongqing University, Chongqing 400044, China

Sustainability, 2024, vol. 16, issue 18, 1-20

Abstract: The smart city pilot plan plays a pivotal role in the modernization of urban development within Digital China. To accelerate economic growth and establish a nation driven by innovation, it is crucial to examine the impact of smart city pilot programs on urban innovation. This research evaluates the effects of these policies using a multi-period difference-in-differences (DID) model. The findings indicate a significant enhancement in innovation levels within cities that participated in China’s smart city pilot program. These results remain robust even after rigorous validity tests. Mechanism testing reveals that the development of smart city pilot cities primarily boosts urban innovation through industrial upgrading and increased informatization. Additionally, heterogeneity tests show that the influence of smart city policies on urban innovation varies according to the geographical characteristics of different cities. Based on these insights, this study provides recommendations to further strengthen urban innovation by optimizing smart city policies. These include crafting differentiated smart city strategies, promoting the digital transformation of cities, and increasing economic support for smart city initiatives.

Keywords: smart city policies; city innovation; quasi-natural experiment; multiple period difference-in-difference (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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