Do Place-Based Policies Promote Local Innovation and Entrepreneurship?*. (30th October 2021)

• Record Type: Journal Article
• Authors: Tian, Xuan; Xu, Jiajie
• Is Part Of: Review of finance. Volume 26:Number 3(2022)
• Page Start: 595
• Page End: 635
• Publication Date: 2021-10-30
• Subjects: G24 -- G38 -- O38 -- L26 -- Entrepreneurship -- Innovation -- National high-tech zones -- Access to finance -- Administrative burdens -- Talent cultivation; Finance -- Europe -- Periodicals; Financiën; Finance; Periodicals; 332.09405
• DOI: 10.1093/rof/rfab029
• Languages: English
• ISSNs: 1572-3097

Abstract

Abstract: This paper explores how a prominent place-based policy in China, the national high-tech zones, affects local innovation output and entrepreneurial activities. Making use of staggered establishments of national high-tech zones in various Chinese cities, we find that the establishment of national high-tech zones has positive effects on local innovation output and entrepreneurial activities. A number of additional tests suggest that the effects appear causal. Access to finance, reductions in administrative burdens, and talent cultivation are three plausible underlying economic channels. Our paper sheds new light on the evaluation of the effectiveness of China's place-based policies.