Effects of the Talent War on Urban Innovation in China: A Difference-in-Differences Analysis

Abstract

Talent is an important strategic resource for regional economic development. Based on the background of “the talent war” that has broken out between various cities in recent years, this study empirically verified the influence of the talent policy on urban innovation in 277 prefecture-level cities in China from 2010 to 2019 using the multi-period difference-in-differences model. The results indicated that “the talent war” caused by the talent policy has positively influenced urban innovation, causing, for instance, a dramatic increase in the number of patents for inventions. Among the subsidy methods of “the talent war” policy, the employment and entrepreneurship subsidy had the greatest incentive effect on urban innovation, followed by the talent housing subsidy. Moreover, the “the talent war” policy exerted a positive impact on urban innovation by improving the innovation willingness of cities and the level of talent gathering. At present, “the talent war” cities have, to a certain extent, restrained the improvement of urban innovation in neighboring cities because of the siphon effect, resulting in the division of the regional labor market. A heterogeneity analysis showed that “the talent war” has significantly promoted substantive innovation and the development of coastal cities with a better business environment and a higher degree of intellectual property protection.

Intellectual property judicial protection, innovation factor input, and corporate innovation: Evidence from the establishment of intellectual property courts in China

“…Local governments also promote regional talent agglomeration and accelerate corporate innovation by enacting talent policies and providing innovation platforms (Shi et al, 2022). Schultz's human capital theory also points out that human capital, as an important source of competitive advantage, has significant innovation-inducting capabilities (Popescu & Diaconu, 2008).…”

“…Based on the market talent supply, in the context of mass innovation, the regions established by IP courts can better create a favorable IP environment and innovation atmosphere. Local governments also promote regional talent agglomeration and accelerate corporate innovation by enacting talent policies and providing innovation platforms (Shi et al, 2022). Schultz's human capital theory also points out that human capital, as an important source of competitive advantage, has significant innovation‐inducting capabilities (Popescu & Diaconu, 2008).…”

Assessing the Potential for Developing Innovation Districts at the City Scale by Adapting a New Sustainable Entrepreneurial Ecosystems Method

“…Meanwhile, the relationship between talent and enterprise choice has changed, realizing the transformation from talent following enterprise to enterprise following talent. From the cultural atmosphere of the city to the office environment of the company, they all have an impact on the location selection of a business [53,54]. More importantly, there is a growing interest in how to form an ecosystem of innovation in a certain region [55].…”

Can talent policy promote firm innovation: An empirical analysis from solar photovoltaic industry in China

“…Moreover, et al, 2014). The agglomeration of heterogeneous talents with multidisciplinary knowledge in a gathering workplace also supply the opportunities for communication and creates a good learning atmosphere, which further inspires the innovative consciousness (Shi et al, 2022). However, due to the lack of elasticity in the supply of highlevel human capital such as scientists and engineers, there will not be a large supply in a short time (Afcha and García-Quevedo, 2016).…”