Does the cross-border e-commerce comprehensive pilot area policy help to improve the level of urban technological innovation?

This study assesses the policy effects on the level of urban technological innovation (LUTI) in three pilot cities (Hefei, Zhengzhou, and Shenyang) that have implemented the cross-border e-commerce comprehensive pilot area (CECPA) policy. First, based on urban panel data from 2006 to 2021, we use the entropy-TOPSIS model to measure LUTI. Further, this study applies the synthetic control method (SCM) to evaluate the effect of policy treatment on three cities. Additionally, this study analyzes two mechanism variables-urbanization rate and average salary level of urban employees-to assess the internal mechanisms affecting LUTI. Lastly, we provide the corresponding countermeasure enlightenment. Empirical evidence suggests that the CECPA policy significantly improves the LUTI in cities. From 2016 to 2021, the LUTI in Hefei rose from 0.4508 to 0.8135, and in Zhengzhou from 0.5316 to 0.7296. Shenyang's LUTI increased from 0.7427 to 0.8307 from 2018 to 2021. Overall, the policy has had a positive effect on the development of technological innovation in cities. In particular, the CECPA policy has a positive impact on the LUTI by increasing the urbanization rate and increasing the average salary level of employees. These results provide a good example of cities implementing CECPA policy and carrying out technological innovation reforms.