A quasi-natural experimental study on enterprise innovation driven by urban agglomeration policies in China

Abstract

It is of great significance to carefully evaluate the actual impact of macro-policy formulation on promoting micro-enterprise innovation and implementing innovation-driven strategies. This study utilizes data from Chinese listed companies between 2012 and 2019 and takes the implementation of urban agglomeration policies as a natural experiment. By employing the multi-period differential method, the driving mechanism of urban agglomeration policies on enterprise innovation is investigated. The results show that: (1) Urban agglomeration policies effectively promote the enhancement of regional enterprises’ innovation capability. (2) Urban agglomeration policies reduce enterprise transaction costs through integration effects, mitigate the influence of geographical distance through spillover effects, and stimulate enterprise innovation. (3) Urban agglomeration policies have a regulatory effect on the siphon and spillover mechanism formed by the central city, thereby driving the innovation and development of peripheral micro-enterprises. (4) Further research from the perspectives of enterprises, industries, and locations reveals that the macro, medium, and micro effects of urban agglomeration policies differ, leading to heterogeneity in enterprise innovation responses. Therefore, it is necessary to continue promoting policy planning for urban agglomerations, enhance the coordination of urban policies within urban agglomerations, adjust the influence of the self-mechanism of urban agglomerations, and foster the formation of a multi-center innovation structure and network within urban agglomerations.

The Double-edged Effect of Urban Agglomeration on Regional Inequality

“…This can impede peripheral cities' motivation to participate. A longterm solution involves the central government's unified and coordinated promotion of urban agglomerations, coupled with improving local government performance assessment mechanisms to reduce local protectionism 31 . This model, combined with exploring mechanisms for sharing benefits and virtuous competition, can be effective in promoting regional cooperation in urban agglomerations.…”

Spatial spillover and threshold effect of green development efficiency on urban human settlement resilience in Yangtze River Delta urban agglomeration

“…Construction of livable cities needs to rationally avoid the siphoning effect between cities. The results of SDM show that the green development efficiency of the region within the YRD urban agglomeration presents a significant negative spatial spillover effect on urban human settlement resilience in the neighboring regions, suggesting a possible siphoning effect between regions [ 59 ]. From the perspective of the urban development process, core city development will be accompanied by the centralized relocation of resources and industries, which may result in the outflow of resources and economic marginalization of the surrounding cities, and thus not be conducive to enhancing the level of urban human settlement resilience within them [ 60 ].…”

Agglomeration Externalities vs. Network Externalities: Impact on Green Technology Innovation in 283 Chinese Cities

“…Contrarily, Liu et al [9] found that AEs' impact on high-quality development unfolds as a U-shaped relationship, thereby implying that such externalities initially impede, but subsequently enhance, high-quality development. Regarding innovation, studies conducted by Yang et al [10], Yao and Wu [11], and Li and Song [12], using spatial econometric models, underscored that AEs can notably foster innovation development in Chinese cities. In the context of environmental pollution, scholarly opinions diverge.…”