Abstract
Among China’s existing state-level High-tech Industry Development Zones (HIDZ), the number of upgraded ones account for more than 65%, which are supposed to fulfill the important mission of leading innovation. However, while the upgraded state-level HIDZ enjoy more opportunities than before, they also face major challenges such as the significant inter-generational differences between them and the born state-level HIDZ. Based on the panel data of Chinese (prefecture-level) cities from 2007 to 2015, the paper empirically examines the impact of the state-level upgrade of HIDZ on urban innovation efficiency by using a difference-in-differences propensity score matching approach (PSM-DID). The results show that the upgraded state-level HIDZ has significantly improved urban innovation efficiency, and this positive effect has gradually increased with the implementation of the upgrade policy. The further heterogeneity analysis shows that the higher the scientific research level of higher education institutions in the cities, the greater the promotion effect of the state-level upgrade. The paper evaluates the policy effect of the upgraded state-level HIDZ from their stated mission, which is a powerful complement to the existing research and provides more effective guidance for policy-makers.
Highlights
China’s State-level High-tech Industry Development Zones (HIDZ), the backbone of the country’s high-tech industries, are a critical driver of China’s innovation and economic growth
In order to fill the above research gaps, this paper focuses on the upgraded state-level HIDZ and intends to evaluate the policy effects from their stated mission
Based on the panel data of Chinese prefecture-level cities from 2007 to 2015, taking the large-scale state-level upgrade of HIDZ in 2010 as a quasi-natural experiment, the paper uses the PSM-DID method to examine the impact of the upgraded state-level HIDZ on urban innovation efficiency and its dynamic effect
Summary
China’s State-level High-tech Industry Development Zones (HIDZ), the backbone of the country’s high-tech industries, are a critical driver of China’s innovation and economic growth. Zhen and Li (2018) elaborated the inter-generational differences between the upgraded state-level HIDZ and the originally established ones based on self-organization theory [3] They both focused on the features and development paths of the upgraded state-level HIDZ, but did not evaluate their policy effect. The state-level HIDZ are the backbone for China to implement the innovation-driven development strategy by fostering high-tech industries [6]; the state-level Economic and Technological Development Zones (ETDZ) are critical for attracting foreign investment and promoting industrial clusters, while most of the province-level zones mainly focus on building industrial agglomeration areas [5] It is more instructive for policy-makers to evaluate the policy effect of upgraded zones from their own stated mission. The paper uses the PSM-DID method, which to some extent overcomes the endogenous and sample selection bias problems, and eliminates the interference from other factors, so as to accurately identify the net effect of the state-level upgrade policy
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
