The effect of urban innovation performance of smart city construction policies: Evaluate by using a multiple period difference-in-differences model

Abstract

In the setting of Digital China, the smart city pilot strategy has become a fundamental part of the intelligent upgrading of the urban development model. Exploring the influence of smart city pilot policies on urban innovation performance is critical for achieving high-quality economic development and creating an innovation-driven country. This study views the experimental smart city policy in China as a quasi-natural experiment and assesses the improved influence of smart city development on urban innovation performance by constructing a multiple period difference-in-differences (DID) model, then confirms it using a variety of robustness test methodologies. The results show that urban innovation performance benefits from the construction of smart cities, and the promotion effect is sustainable. The level of economic development and information infrastructure, as well as the financial innovation expenditure, have a beneficial effect in encouraging smart city construction innovation performance, while the degree of opening-up hinders the improvement of smart city urban innovation performance. In addition, it is also found that there is heterogeneity in the promotion effect of smart city building on urban innovation performance. The research of this paper provides useful enlightenment for better exerting the promotion effect of smart city building on urban innovation performance.