Study Of The Impact Of Industry Agglomeration On Enterprise Technological Innovation

With the importance of industrial agglomeration and technological innovation foreconomic growth and the market competitiveness of enterprises, become increasinglyevident. The discussion about industrial agglomeration and technological innovationhas increased more and more. Compared with developed countries and newlyindustrialized countries, China, as a developing country, has a huge gap in the level ofindustrial development and technological innovation. While there is a growing trendin some important areas of the technology gap. To change China’s current industrialdevelopment and improve the innovation capability of Chinese enterprises, a thoroughdiscussion of the relationship between the two is in this paper. Industrialagglomeration can bring lots of advantages to technological innovation of theenterprise, including exploring innovative opportunities, the innovative power due tofierce competition, the advantages of technological learning and diffusion, theconvenient for resources of availability and sharing, the advantages due to the divisionand cooperation of technological innovation. At the same time, enterprises are alsofacing challenges in the processes of industrial agglomerating. The imbalances ofknowledge conversion system, internal and external knowledge systems and industrialbase would cause macroeconomic imbalances, meantime, the broking of theinteraction relationship, knowledge spillovers, the locking of cognitive distance causemicro risk.After the evaluation about China’s representative industries’ level ofagglomeration and technological innovation capacity, we found that the currentconcentration level of China’s industrial industry as a whole is on the rise, the "largeand complete”,“small and complete" kind of industrial regional distribution hasbasically be broken. But there are significant differences in the level of agglomerationand the changes of agglomeration level among those industries are obvious. Themanufacturing of computer and electronic equipment industry has a higheragglomeration level, but the processing of agro-food industry has a loweragglomeration level. Moreover, China’s industrial is obviously concentrated to theEastern, especially the manufacturing of electrical machinery and equipment industry, the manufacturing of communications equipment and other high-tech industry. In theselected nine industrial industries, technological innovation capability is higher incommunications equipment and other electronics manufacturing, and transportationequipment manufacturing, etc., but overall, these industries technological innovationability level is not high. In addition, from2004to2009the change of thetechnological innovation capability is not too large, and the eastern part of China alsohas a higher level of technological innovation capability than the west.The panel data regression results show that the relationship between industrialagglomeration and technological innovation does not seem to has a simple monotoniclinear relationship, there is a turning point, industrial agglomeration and technologicalinnovation is negatively related before the turning point, but positively related afterthe before the turning point. In order to play to the technological innovationadvantages of industrial agglomeration better, the Government should promote theconstruction of intermediary service organizations, strengthen the co-operationbetween agglomerative enterprises and international enterprises, make classifiedindustrial policy to promote the development of industrial agglomeration, meanwhile,we need make efforts through three ankles including government, agglomeration andenterprises to strengthen the governance of industrial agglomeration.