Government management systems and enterprise innovation: insights from China’s national development zones

Abstract This study explores how different management systems of national-level development zones affect enterprise innovation in emerging economies such as China. Based on the microdata of Chinese enterprises from 2013 to 2022, using the method of difference-in-differences propensity score matching, it is found that the enterprises in the national development zone have improved their innovation behaviour with the support of the government’s institutional innovation and preferential policies. Especially in the government-led and government-service-oriented management system, the enterprise’s innovation capacity significantly improved. At the same time, as an important index to measure the strength of policy, government subsidy plays a key role in the mechanism of promoting enterprise innovation. The results emphasize the importance of the impact of different management systems on enterprise innovation. These findings not only improve our understanding of the policy effects of development zones but also provide valuable conclusions for the Chinese government.