Can urban agglomeration policy improve the innovation efficiency of cities in China?

Song Wang, Dailing Hou, Yan Liu, Xueli Wang and Liang Dai

Regional Studies, 2024, vol. 58, issue 12, 2449-2467

Abstract: This study investigates the influence of urban agglomeration policy on innovation efficiency through a difference-in-differences analysis. Findings reveal that urban agglomeration policy has led to a decrease of 3.65% in the innovation efficiency of urban agglomerations, although there is heterogeneity in the policy’s impact across these agglomerations. Cities within agglomerations are categorised into core and non-core cities, while the policy has boosted innovation efficiency by 10.1% in core cities but by −3.89% in non-core cities. Overall, urban agglomeration policies exhibit a more pronounced innovation siphoning effect, and mechanism testing of labour and commodity markets corroborates this observation.

Date: 2024
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DOI: 10.1080/00343404.2024.2398562

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