How Does the Urban Living Environment Affect Regional Innovation Capabilities? Empirical Evidence from Chinese Cities

The urban living environment not only affects public health and well-being but also poses a challenge to regional economic transformation and sustainable development. Based on the panel data of 278 cities in China from 2017 to 2021, we employ spatial econometric models and mediation models to explore the impact of the urban living environment on regional innovation capabilities. The results show that when optimizing the urban living environment, it is conducive to improving regional innovation capabilities. This improvement has spatial spillover effects. The development of regional innovation capabilities from an improved living environment is more pronounced in midwestern, southern, and small cities. The spatial spillover effects of the urban living environment on regional innovation capabilities are more significant in eastern, southern, and large cities. Finally, innovation talent plays a mediating role between the urban living environment and regional innovation capabilities. This study provides inspiration for local governments to improve environmental quality and promote regional innovation development.