Do Smart City policies make cities more innovative: evidence from China

Abstract

The aim of the present study is to reveal the causal effects of Smart City policies on urban innovation. Using the panel data harvested from 103 cities in China, the constructed sample was analysed rigorously based on the combination of the strength of Propensity Score Matching (PSM) and Difference-in-Differences (DID). As suggested by the empirical results, Smart City policies indeed positively and significantly impact urban innovation . Besides, whether policy effects vary with the regional location and city scale is explored; the results reveal that the impact is significantly positive only for the megacities as well as cities in central China.