Human Capital, Knowledge Innovation and Service Industry Spatial Agglomeration:An Panle Data Analysis Based on Provincial

Applying the service industry panel data of 31 provinces in China from 2000 to 2012, considering the spatial agglomeration's effect of human capital and knowledge innovation and establishing the spatial agglomeration panel econometric model of services industry, relationship between human capital, knowledge innovation and service industry spatial agglomeration were empirically studied. The empirical results demonstrated that: Human capital had a significant positive role in promoting local service spatial agglomeration. Human capital produced the regional comparative advantage, formed the reservoir of human resources. Service companies are likely to come to the region, gathering the advantages and developing space cluster. Knowledge innovation also had a positive role in promoting service spatial agglomeration. The enhancement of knowledge innovation resulted in the dissemination of knowledge and technology among enterprises in the region, stimulated business innovation and improved the formation of regional knowledge spillovers and agglomeration effects. The results also demonstrated that, economic development and urbanization played positive role in promoting service spatial agglomeration, while opening outward and government intervention did not.Industrial development played different roles between short term and long term.