Drawing upon panel data spanning 2006-2020 from 271 cities across China,this study employs difference-in-differences and synthetic difference-in-differences meth-odologies to investigate the impact of the comprehensive innova-tion reform pilot zone policy on urban innovation capabilities and its underlying mechanisms.The findings reveal that the imple-mentation of this policy has significantly enhanced the innovation capabilities of cities within the pilot zones,with the policy effects intensifying as the zones continue to develop and mature.Further,the mechanism analysis underscores that the policy boosts urban innovation capabilities through four primary chan-nels:leveraging government guidance,fostering policy agglomer-ation,attracting talent concentration,and optimizing the innova-tion ecosystem.The heterogeneity analysis highlights that the in-novative effects of the comprehensive innovation reform pilot zone policy are most pronounced in regions such as Shanghai,Wu-han,Xi'an,Anhui,and Sichuan,as well as in industries in-cluding manufacturing,construction,information transmission,software,and information technology services,and residential services,repairs,and other services.Additionally,the study observes a"U-shaped"effect in terms of policy impact across cities with varying levels of innovation capabilities,suggesting a nuanced interplay between policy interventions and pre-existing innovation capacities.
innovation-driven developmentcompre-hensive innovation reform pilot zoneurban innovation capabili-tyDifference-In-Differences