The government programs “are definitely helping the economy,” he said.

Still, Innovation Street pales in comparison to the efforts in hot spots like Beijing and Hangzhou, a city in the east, which have not only higher salaries, but also entire neighborhoods of start-up centers. And the residents of Phoenix Valley complain that venture capital and talent are scarce in Shenyang.

Other initiatives in the city seem to be generating more buzz than business. In April, Shenyang opened a branch of the provincial free-trade zone, in which companies can benefit from reduced red tape, discounted land and other advantages. At its offices, in the corner of a gargantuan, columned hall worthy of a Star Trek set, dozens of businesspeople and their agents lined up to register companies.

But the zone’s rules do not require these businesspeople to start any actual operations there. Tian Jiawei, a manager at an agricultural company based near Shenyang, registered an export-import firm, but has no plans to open an office or hire workers.

“I’m not sure what kind of tax break I might enjoy, but I didn’t want to miss the opportunity,” he said.

More problematic: Shenyang’s incentive programs are not unique. “Every province and city in China has policies to encourage investment and start-ups,” said Zhao Xijun, deputy dean of the School of Finance at Renmin University in Beijing. “If northeast cities just do the same, they won’t be able to compete with those who are already ahead of them.”

The result is that, even with its active officials, China may find reviving its troubled industrial towns every bit as challenging as Western countries like the United States do.

“Shenyang still has a long way to go,” Mr. Liu, the factory owner, said. “It is like grass that you burn to the ground. It is going to grow back. You just don’t see it at the moment.”