Empirical Analysis of the Effect of Innovation and Entrepreneurship Capabilities on Regional Productivity by the Way of GMM

This article uses the provincial panel data from the year 2000 to 2010 to have an empirical analysis on how innovation and entrepreneurship capability affect regional productivity by the way of GMM.Results show that they are the power to enhance regional productivity.However,they have weak influence on regional productivity.From the country's point of view,innovation capability has weak positive influence on total productivity,but entrepreneurship capability has not notable positive effect;from the perspectives of groups results,innovation and entrepreneurship capabilities have not notable positive or negative effects on total productivity of other areas,but have 10% positive effect on total productivity of high innovation and high entrepreneurship capability regions.