Industrial Agglomeration,Dynamic Externalities And Innovation

With the development of reform and opening up,China's economy has gradually transferred from the high-speed stage to high-quality.Today,China is not only at the condition of three-phase superposition,but also facing the challenges of supply side reform,epidemic prevention and international political and economic shock.Therefore,how to transform the old mode of development,optimize the economic structure,stimulate new growth momentum,and gradually build a "Double Cycle" system are not only the key issues for China,but also the core issues for future.As the fundamental force of development,innovation is playing an increasingly important role.The 14 th Five-Year Plan also emphasizes the significance of Innovation Driven Development Strategy.Also,as a regular feature of the spatial distribution of factors during the process of economic development,how industrial agglomeration affects innovation is also a key issue which needs discussion.In this context,this paper will take "industrial agglomeration,dynamic externalities and technological innovation" as the core issue,and explores the impact of industrial agglomeration on innovation.Based on the dynamic externality and other related theories,this paper will also build an analysis framework to analyze the mechanisms between agglomeration and innovation,which makes contribution to political enlightenment.Chapter I introduces research background and significance of this paper,explains the three core concepts of industrial agglomeration,technological innovation and the dynamic externality,and also briefly describes the research content,research methods,technical route and possible innovations of this paper.Chapter II is the literature review,which discusses the theory train,related researches of industrial agglomeration,technological innovation and the relationship between industrial agglomeration and innovation.Then the key results and conclusions at home and abroad are reviewed.On this basis,it summarizes and comments on the main contributions of the existing literatures and the directions which can be explored,and finally leads to the breakthrough point of this paper.Chapter III emphasizes the development of China's industry and technological innovation.Based on the provincial level data,which is from China Statistical Yearbook,CNKI Patent Database,China Industrial Enterprise Database and other related data sources,this paper uses Industry Concentration,Location Quotient,Spatial Gini Coefficient,EG index and DO index to analyze the development and spatiotemporal evolution of the agglomeration of industries and innovation.This paper further reviews and summarizes the characteristics,explores and excavates the potential relationship between industrial and innovation agglomeration.This also provides sufficient empirical support for the following theoretical and empirical research.The results show that: the synergy of industrial and innovation agglomeration is mainly reflected in two aspects: on the one hand,they have similar spatial distribution;on the other hand,there also exists similar development trend between industrial and innovation agglomeration.Moreover,the improvement of innovation is always accompanied by the improvement of industrial agglomeration.Chapter IV discusses the impact of industrial agglomeration on innovation at the regional level.Firstly,based on Schumpeter's theoretical framework,this paper innovatively constructs an endogenous growth model including agglomeration and innovation.Through model derivation,this model forms the three propositions and one corollary.Furthermore,based on the data of 285 Chinese cities and the manually collected patent data of prefecture level cities,this paper empirically analyzes how industrial agglomeration affects innovation,with solving the endogenous problems and carrying out a series of robustness tests.According to the regional characteristics and related factors,this paper employs heterogeneity and moderating effect analysis.Furthermore,by constructing the spatial weight matrix,this paper also analyzes the spatial effect of industrial agglomeration on innovation,and discusses the possible nonlinear relationship between them.The results indicate that generally agglomeration has a significant positive effect on regional innovation,and this result is still robust after considering the endogenous and other related problems.Heterogeneity analysis shows that the effect of industrial agglomeration on innovation is more powerful among the cities that are not in eastern regions,or the cities with greater size and high-speed railway.Better institutional environment and element structure can strengthen the effect of industrial agglomeration on innovation.Spatial econometric results indicates that agglomeration can positively promote innovation.In addition,industrial agglomeration has positive spatial spillover effect and feedback effect.Further,inverted-U relationship between industrial agglomeration and innovation is obvious,which is more significant when considering the scale variables of innovation.Chapter V further investigates this issue from the perspective of firms.Based on the basic empirical framework of Chapter IV,the expansion and innovation of Chapter V are: firstly,according to life cycle theory,the innovation variable system is built by R&D,patent and corporate new product.This paper further designs and employs the innovative mode variables.In addition,this paper innovatively crawls the information of patent citations in Google patent database,and additionally builds the patent knowledge width variable,which eventually formatting a multi-dimensional corporate innovation quality evaluation variable system.In the measurement of industrial agglomeration,this paper uses the industrial agglomeration indicators which is widely used in previous literature,including Location Quotient,Spatial Gini Coefficient,EG index and so on.Through Baidu Map Developer API,x Geocoding Software and Python,this paper geocodes the precise longitude and latitude of the firms in the database,and then calculate DO index of three digits industries over the years.In summary,this chapter not only analyzes the impact of industrial agglomeration on enterprise innovation,but also further discusses how agglomeration affects the quality of innovation,which leads to the consideration of low-level innovation.The results show that: industrial agglomeration also plays a significant positive role in promoting enterprise innovation,and this role is still robust after considering a series of problems.Heterogeneity analysis shows that the positive effect of industrial agglomeration on innovation is more obvious among mature,non-state-owned and capital or technology intensive industries firms.At the same time,firm level data still support the inverted-U relationship between industrial agglomeration and innovation.As for innovation quality,this paper further finds that industrial agglomeration decreases the probability of choosing high level innovation mode for firms.Industrial agglomeration also reduces the quality of corporate innovation,and this effect is persistent.However,large-scale,non-stateowned and technology intensive enterprises can to some extent avoid this negative impact.The analysis based on DO index is consistent with the previous findings.Chapter VI follows the positive and negative externality logic of industrial agglomeration and constructs the mechanism analysis framework of this paper,using the Mediation Effect Model and Moderating Effect Model.Regional level data and firm level data are both introduced into the mechanism analysis.From the perspective of positive externalities: firstly,this paper constructs three kinds of dynamic externalities,which includes Marshall,Jacobs and Porter,and analyzes the impact of three kinds of dynamic externalities on innovation.Further,Marshall externalities are decomposed into three paths: labor pool,intermediate goods input sharing and knowledge spillover.By constructing corresponding indicators,this chapter investigates the properties of three dynamic externalities and the three paths decomposed by Marshall externality.Furthermore,from the perspective of firms level,this chapter also discusses the two mechanisms: financial constraints and corporate communication.The results demonstrate that the three dynamic externalities can positively promote innovation,however the effect of Marshall externality is greater than other externalities.Moreover,the three mechanisms decomposed by Marshall's externality are important mediating variables,in which knowledge technology spillover plays a leading role.Additionally,agglomeration also improves innovation by easing the financial constraints and strengthening the communication between firms.From the perspective of negative externality: this chapter constructs the indicators of land price and infrastructure to describe the crowding effect caused by industrial agglomeration.In addition,by introducing two indicators of strategic choice and enterprise dynamics,this paper also investigates the negative mechanism of industrial agglomeration.The results indicate that: by increasing the land price and crowds out public infrastructure,agglomeration reduces the probability of firm's choosing the high-level innovative mode and the quality of corporate innovation.Industrial agglomeration also generates negative effect by enhancing the low-cost strategic preference and increasing the entry of enterprises with low innovation ability(enterprise dynamics).Chapter VII concludes,in which the findings,shortcomings of this paper and the possible future research directions are discussed.This paper holds that the government needs to strengthen the targeted industrial agglomeration represented by high-tech industries,and further expands the existing innovation scale,guide and strengthen the radiation effect of the existing agglomeration centers.Furthermore,form the coordinated development of regional linkage and industry,and efforts should be made to build a good business environment.Intensify the role of innovation as a dynamic "agglomeration engine" and the positive externalities of agglomeration through multiple channels.So that China can keep the virtuous cycle of "industrial agglomeration ? innovation development ? industrial agglomeration ? innovation development".