Research On The Effect Of Urban Innovation In China Pilot Free Trade Zone

In recent years,the development of China’s high-tech industry has been good,which has promoted rapid economic growth,but the tension in the international situation,such as the scientific and technological blockade and trade restrictions imposed by Western countries led by the United States,have seriously hindered the development of China’s investment and trade.In this context,the construction of the free trade zone is conducive to reducing trade costs,and through institutional design and concept innovation in investment,finance and supervision,it is necessary to test whether China can adapt to the new rules and requirements of the new generation of international trade.Since the establishment of the Shanghai Free Trade Zone in2013,China has built a total of 21 free trade zones,covering the east,west,south,north and middle.At the beginning of its construction,the FTZ was based on the national innovation-driven development strategy,and accelerated the rise of the division of labor status of China’s industrial global value chain by stimulating the innovation power of innovation subjects.The report of the 20 th National Congress of the Communist Party of China also clearly proposed to implement the strategy of upgrading the pilot free trade zone and expand the network of high-standard free trade areas facing the world.In the theoretical analysis part,this paper systematically and concretely summarizes and analyzes the relevant research literature and theoretical results of the construction of pilot free trade zones and urban innovation at home and abroad,and clearly defines the concepts of free trade zones and urban innovation involved in this paper.This paper theoretically analyzes the internal relationship between the construction of China’s free trade area and the promotion of urban innovation,and discusses the mediating role of trade facilitation and investment facilitation on the urban innovation effect of free trade area.Free trade zones reduce institutional transaction costs of innovation subjects through trade facilitation,stimulate import spillover and "export learning",and ultimately the overall innovation level of the city.Expand the level of opening up through investment facilitation,attract foreign investment,promote technology upgrading oriented outbound investment,generate spillover effect and strengthen urban innovation.In the empirical analysis part,this paper uses the entropy method to construct the urban innovation capacity index from the three aspects of innovation input,innovation output and innovation environment,and calculates the urban innovation capacity index.Based on the panel data of 196 cities from 2005 to 2020,this paper empirically analyzes the urban innovation effect of the establishment of free trade zones by using the method of differential and differential analysis,taking 21 free trade zones established in 2015 and 2017,such as Zhuhai,Tianjin,Zhengzhou and Xi ’an,as the processing group.Furthermore,the paper analyzes the difference of urban innovation effect of different batch and geographical location of free trade zone cities.At the same time,introducing the intermediary variables,trade facilitation and investment facilitation,exploring the path of establishing free trade zones to enhance the level of urban innovation.In this paper,the principal component analysis method is used to calculate the comprehensive evaluation score of trade facilitation and investment facilitation.In this paper,the multi-period differential model is constructed to analyze the policy effect,and the following conclusions are drawn: First,the results of the multi-period differential model show that the free trade zone policy has a promoting effect on the innovation capability of the city,and it passes the parallel trend test and the robustness test.Second,the policy effect of free trade zones established in 2015 is greater than that of 2017,and the urban innovation effect of coastal free trade zones is greater than that of inland free trade zones.Third,the free trade area can significantly improve urban innovation through trade facilitation and investment facilitation,and the intermediary effect of trade facilitation is stronger than the intermediary effect of investment facilitation.Based on the research results,this paper puts forward the following policy recommendations: first,give full play to the advantages of institutional innovation in free trade zones;Second,coordinated development of pilot free trade zones according to their own characteristics;Third,give full play to the positive role of trade and investment facilitation on the urban innovation effect of free trade zones;Fourth,we need to intensify efforts to implement the FTA strategy.