The Relationship Between Distribution Industry Innovation and Urban Economic Growth in Smart Cities

The growth of smart cities has been driven by digital economy technology, and each city’s economic development has been significantly impacted by the trade and distribution sector. Based on the externality theory, this study develops the MAR externality innovation index, Jacobs externality innovation index, and Porter externality innovation index, and then uses panel data from smart cities from 2013 to 2020 to examine the effects of the three types of indices on the economic standing of cities. First, it is found that Jacobs’ externality innovation in the distribution and commerce industries is better adapted to our current cities. Second, smart cities may innovate just as well as conventional ones in the distribution and business sectors. Third, compared to conventional cities, smart cities’ economic growth is far more influenced by expenditures in research and technology. This study indicates that to support the integration and growth of the distribution of commerce industries, we should build industrial clusters, stimulate the development of industrial clusters and integration, and strengthen the scientific and technological support of cities.