Has the artificial intelligence innovation and development pilot zone improved regional entrepreneurial activity?
TL;DR
Targeted policy recommendations are proposed to better leverage the demonstration and leadership role of these zones and sustainably unlock regional entrepreneurial vitality.
Abstract
This study systematically examines the impact and mechanism of establishing artificial intelligence innovation development zones on regional entrepreneurial activity. Theoretically, the establishment of such zones significantly promotes local entrepreneurship through three pathways: stimulating digital economy vitality, driving offline experiential economic development, and enhancing regional R&D efficiency. These mechanisms expand market potential and reduce costs for entrepreneurial activities from both supply and demand sides, thereby increasing entrepreneurial dynamism. Empirically, this research uses panel data from 285 prefecture-level cities and above in China between 2009 and 2023, treating the designation of national new-generation artificial intelligence innovation development zones as a quasi-natural experiment. This study measures urban entrepreneurial activity as the number of registered enterprises per ten thousand residents, employing a multi-period difference-in-differences approach. Results show that the promotion effect of AI innovation zones on entrepreneurship exhibits significant regional heterogeneity—policy impacts are stronger in cities with underdeveloped factor markets and well-developed transportation infrastructure. At the city level, various foundational factors differentially affect entrepreneurial activity: higher per capita economic development, internet penetration, and education levels positively boost entrepreneurship, while excessive concentration of financial and fiscal resources exerts a certain inhibitory effect. Furthermore, the establishment of AI innovation zones not only enhances local entrepreneurial activity but also generates spillovers to other regions within the same province. Based on these findings, targeted policy recommendations are proposed to better leverage the demonstration and leadership role of these zones and sustainably unlock regional entrepreneurial vitality.