The Empirical Study Of China's Coastal Areas Innovative Agglomeration And Economic Growth

Various schools of economic theory are considered:innovation is the fundamental driving force for economic growth and social progress, is a comprehensive reflection of the country's competitiveness. Modern economics of agglomeration consider that companies are the main resources of economic growth. The spatial agglomeration of enterprises results in industrial agglomeration which promotes economics growth. However, the latest researches indicate that industrial agglomeration is not always accompanying with economic growth. Innovative agglomeration is the reason of sustained economic growth.This paper investigates the relationship between innovative agglomeration and economic growth of China's coastal areas (excluding Hong Kong, Macao and Taiwan province). The empirical results show that the innovative agglomeration of the coastal areas have a positive effect on economic growth, which is consistent with theoretical predictions. In the examining the various factors affecting the innovative agglomeration, this paper chooses the full amount of fixed capital investment, the average educated years of labor force ant the actual foreign direct investment as the factors. The results show that the amount of investment in fixed capital and the average educated years of labor both have significant positive effect on innovative agglomeration, but the effect is different. Foreign Direct Investment can either increase the level of innovative agglomeration or stifle the level of it.This paper also analyzes the situation of Fujian Province. The results suggest that Fujian has the middle level of innovative agglomeration among China's coast areas. Fujian does not have obviously comparative advantages in high technology industries. The innovative agglomeration index of Fujian was decreasing after 2006, which means the advantage is going down. This phenomenon is related to the industrial structure of Fujian province. Petrochemical industry, electronic information industry and machinery manufacturing industry are the leading industries of Fujian.Finally, with reference to the development experience of Japan, South Korea and the United states, we found that the interaction of government support, high education institutions and high-tech enterprises have obviously effects on innovative agglomeration.Fujian should strengthen policy guidance to promote the joint development of education, manufacture and research.