Note(s): Table 2 presents the baseline results for establishing local SASACs and SOEs' innovation. The dependent variables in columns (1) and (2) are innovation, measured as the natural logarithm of 1 plus the number of invention patent applications in year t+1 (Innovation_t+1). The key independent variable is the establishment of local SASACs (GZW). We report in parentheses t-statistics based on standard errors that are robust to heteroskedasticity. ***p < 0.01; **p < 0.05; *p < 0.10; two-tailed test. See Appendix A for variable definitions