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

Kai Qu, Yapeng Zhang () and Xiaohui Fan
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Kai Qu: Yulin University
Yapeng Zhang: Yulin University
Xiaohui Fan: Yulin University

Journal of the Knowledge Economy, 2025, vol. 16, issue 1, No 166, 4747-4781

Abstract: 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.

Keywords: Smart City Pilot Program; SCPP; Total factor productivity; Enterprise productivity; Technological innovation; Specialization; Government subsidies; Urban development; Policy implications; Causal mechanisms; Empirical analysis (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-02145-y

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