NEW INDUSTRY MODEL: INDUSTRY–EDUCATION INTEGRATION AND REGIONAL TECHNOLOGICAL INNOVATION

The demand for talent and innovation in the context of high-quality development is becoming increasingly critical. This study, therefore, examines whether Industry–Education Integration (IEI), as a key institutional framework that combines knowledge and industrial value chains, can promote regional technological innovation. Using panel data from 282 Chinese cities between 2012 and 2021, the study employs the difference-in-differences (DID) model to analyze the effects of the pilot implementation of National Industry–Education Integration Cities (NIEICs) as a quasi-natural experiment. The findings reveal that IEI significantly fosters regional technological innovation, and these findings remain robust across various sensitivity tests. Further analysis reveals the mechanisms underlying this effect: pilot cities experience higher fiscal expenditures on education and technology, increased employee wages, and broader coverage of unemployment insurance. In terms of heterogeneity, the innovation-enhancing effect varies by patent type, but is currently driven mainly by low-quality innovations. Moreover, the effect is more pronounced in cities with emerging industrial structures and higher levels of marketization. To advance quality-oriented development through talent and innovation, China should continue to deepen the integration of industry and education.