Does double innovation-driven policy matter? Evidence from urban industrial agglomeration

Using data from 2003 to 2019 and difference-in-difference (DID) model, we explore the effect of double innovation-driven policy, namely the National Innovation Demonstration Zones (NIDZ) and Innovative Cities (IC), on urban industrial agglomeration. The results show that double innovation-driven policy significantly promotes urban industrial agglomeration. This result remains consistent after a series of robustness and endogeneity tests. Additionally, double innovation-driven policy plays roles by promoting structural upgrading and talent agglomeration. Moreover, the effect is stronger in eastern and high marketization-level areas. Further analysis reveals that the effect is stronger in areas with higher industrial agglomeration and that the double innovation-driven policy outperforms the single policy.