Place-based policies and innovation: The contrasting roles of central and local special economic zones
利用中国县级数据，研究发现国家级特殊经济区通过改善交通和促进创业提升了区域创新，而省级特殊经济区因增加地方财政压力反而抑制了创新。
This paper establishes the linkage between place-based policies and growth from the perspective of regional innovation, using China as a case study . Leveraging extensive data on special economic zones (SEZs) and patent data, I examine the causal effects and underlying channels of SEZ introduction on regional innovation outcome. Through a set of difference-in-differences estimations at the county level, the empirical findings demonstrate that central and local SEZs play contrasting roles in innovation. Specifically, the establishment of national-level zones significantly increases regional innovation outcome through the positive channels of improved transportation accessibility and increased start-up activities. However, the introduction of provincial-level zones has a negative impact on regional innovation outcome through the negative channel of the rising fiscal pressure of local government. Furthermore, the empirical results confirm that the SEZ effects vary with local development level and zone characteristics. These findings contribute significantly to the development of a context-tailored place-based policy toolbox.