Does cross-policy mix work on digital innovation: Analyzing by the impact of open government data and low-carbon city pilot policies in China

Abstract

This paper examines the influence of policy combinations on digital innovation, drawing upon comprehensive panel data encompassing 284 Chinese cities. It focuses on China's open government data (OGD) and low-carbon city pilot (LCCP) policies to determine whether these policies, when combined, can elicit a synergistic effect that significantly facilitates digital innovation. Based on the “Technology-Organization-Environment” (TOE) framework, the empirical results indicate that the dual pilot policy combination substantially fosters digital innovation, with R&D diffusion, human capital diffusion, and public environmental concern serving as pivotal transmission mechanisms. The empirical evidence also demonstrates that the positive impact of the policy combinations of dual pilot cities on digital innovation varies depending on geographical location, urban administrative level, and city size. Moreover, building upon the new economic geography theory, the empirical results indicate that the spatial spillage of the dual pilot policy has a positive impact on digital innovation, with a spillover boundary of 250 km. These insights underscore the importance of strategic policy combinations and can guide governments in designing effective digital innovation incentive policies.