Examining 286 Chinese cities, this research leverages government-issued digital strategies as an experimental framework, affirming digital economy’s vital role in enhancing urban innovation. Findings emphasize its impact on innovation quality, with regional disparities.
China’s transition to an innovation-centric model underscores the significance of its “Digital China” strategy, highlighting government leadership in digitalization. Yet, challenges like the digital divide warrant tailored interventions. The study underscores the imperative of government policies in fostering digital economy growth and steering innovation. Integrating digital strategies into urban development is crucial for addressing structural hurdles and maximizing innovation dividends.