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Does the National Level Development Zone foster cities' innovation capacity? A study from China
1Business School, China University of Political Science and Law, Beijing, People's Republic of China.
Plos One
|February 6, 2026
Summary
National Level Development Zone (NLDZ) development significantly impacts urban innovation capacity in China. Regional disparities exist, with Eastern NLDZs showing the greatest effect, while preserving optimal NLDZ quantity is advised to avoid diminishing returns.
Area of Science:
- Urban Studies
- Regional Economics
- Innovation Policy
Background:
- National Level Development Zones (NLDZs) are key policy tools in China aimed at fostering economic growth.
- Understanding the impact of NLDZs on urban innovation capacity is crucial for effective regional development strategies.
- Previous research has not fully elucidated the nuanced effects of NLDZs across different regions and administrative levels.
Purpose of the Study:
- To analyze the impact of National Level Development Zone development on urban innovation capacity in China.
- To investigate regional variations in the effectiveness of NLDZs on urban innovation.
- To compare the influence of NLDZs at different administrative levels and within various zone types.
Main Methods:
- Utilized panel data from 2014 to 2022 for Chinese cities.
- Employed econometric analysis to assess the relationship between NLDZ development and urban innovation capacity.
- Compared effects across geographical regions (East, West, Northeast, Middle), administrative levels (province, prefecture), and zone types (Bond Area, Economic and Technological Development Zone, High-Tech Industrial Development Zone).
Main Results:
- NLDZ development positively affects urban innovation capacity, with significant regional disparities.
- The Eastern region shows a greater positive impact compared to the Western region.
- NLDZs in the Northeast and Middle regions have the least influence; provincial-level NLDZs outperform prefecture-level ones; Bond Area NLDZs yield the highest impact, followed by Economic and Technological Development Zones, and then High-Tech Industrial Development Zones.
Conclusions:
- NLDZ policy demonstrates a heterogeneous impact on urban innovation capacity across China.
- Policy recommendations include optimizing the quantity of NLDZs to maximize benefits and avoid diminishing marginal utility.
- Targeted strategies considering regional characteristics and zone types are essential for enhancing urban innovation through NLDZs.
