Can innovation improve the residents' subjective well-being? Evidence from China

Abstract

PurposeThis paper attempts to study the relationship between the level of urban innovation and subjective well-being (SWB). The following questions are discussed: (1) Does improving the level of innovation in cities affect the SWB of residents? (2) If urban innovation levels affect residents' SWB, can improving urban innovation level improve residents' SWB? (2) If urban innovation level improves residents' SWB, what is the possible mechanism? (3) Is there any difference in the effect of urban innovation level on the SWB of different groups?Design/methodology/approachThis paper chooses the ordinary least squares (OLS) regression method for baseline regression with robust standard errors, and the regression results of Oprobit will be presented in detail in the robustness test section. The model is constructed by matching the micro data and the macro data. Meanwhile, the instrumental variable (IV) method is also used to deal with the possible endogeneity problem.FindingsThis paper finds that urban innovation has significantly improved the SWB of residents. This finding still holds after considering the endogeneity issue and conducting a series of robustness tests. Moreover, the level of innovation positively influences residents' SWB mainly through the paths of increasing income levels, improving environmental quality and promoting convenience in life. What's more, urban innovation has a more significant effect on the SWB of low-income groups and those with low education levels. Finally, based on the findings, this paper also proposes some policy recommendations to further improve the SWB of residents.Research limitations/implicationsGiven the limitations of the data, the above study deals with China. In the future, international data can be further used to further explore the impact of the innovation level of international cities on the SWB of residents and then the research conclusions can be applied to the international community to provide theoretical basis and empirical support for policy makers of various countries, which will help improve the SWB of residents of various countries and enrich the theoretical and empirical research on the impact of innovation on the SWB of residents.Social implicationsWell-being is a goal constantly pursued by human beings. This paper shows that urban innovation has significantly improved the SWB of residents. The findings provide guides to improve the SWB of residents and provide a certain theoretical basis and empirical reference for policy makers.Originality/valueThe possible innovations or contributions of this paper include: (1) based on the China Household Income Survey (CHIP) and the “Report on Innovation of Chinese Cities and Industries”, this paper studies the impact of urban innovation levels on residents' SWB, supplementing the gaps in existing literature; (2) through group analysis, the heterogeneity of the impact of urban innovation level on groups with different incomes and education levels was discussed and (3) the mechanism of urban innovation level on residents' SWB was identified. These studies and discussions provide a basis for more effective improvement of residents' SWB and provide a valuable reference for promoting people's pursuit of a better life.