Improving Innovation within the Cultural Industry via Public Cultural Service Systems: Evidence from a City Pilot in China

The public cultural service system is closely linked to the enhancement of competitiveness in the cultural industry and the realization of citizens’ basic cultural rights. This article employs municipal-level data on the cultural industry and microdata from listed companies from 2001 to 2016. A staggered differences-in-differences method is used to evaluate the impact of the National Public Cultural Service System (NPCS) policy on innovation in the cultural industry. The findings indicate that innovation levels in the cultural industry increased after cities were designated as pilot sites. Furthermore, the expansion of public cultural facilities and the concentration of cultural talent may serve as two potential mechanisms through which the NPCS policy exerts its effects.