Abstract: Under the context of implementing the innovation-led development strategy, the effects of performance-based accountability mechanism on regional innovation have drawn increasingly attention in China. However, the relevant empirical research is rare. In the light of organizational pressure-response theory perspective, the paper focuses on the the annual report of local government, and empirically tests the relationship between performance-based accountability mechanisms and regional innovation by means of panel data from 31 provincial governments (2003-2012). The finding shows that there are insufficient effects of performance-based accountability on regional innovation, which depend on the rational choice of local government. Thereupon, it is essential to design the performance-based accountability mechanism on the premise of analyzing the role characteristics as well as the impression management motives of local governments, in order to motivate them to advance the implementation of innovation-led development strategy.

Key words: performance-based accountability, regional innovation, annual government report, innovation-led, panel data analysis