Do Place-Based Policies Promote Local Innovation and Entrepreneurship?
Review of Finance, Forthcoming
79 Pages Posted: 13 Feb 2018 Last revised: 18 Jul 2022
Date Written: February 5, 2018
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.
Keywords: Entrepreneurship, Innovation, National high-tech zones, Access to finance, Administrative burdens, Talent cultivation
JEL Classification: G24, G38, O38, L26
Suggested Citation: Suggested Citation