Impact of Industrial Agglomeration on Regional Innovation: Innovation Factor Model and Empirical Test

The traditional linear econometric model of the impact of industrial agglomeration on regional innovation has the problem of neglecting the factors of innovation production and endogeneity. This paper aims to advance the innovation factor model, focusing on innovation input factors such as technology, capital, human capital and labor force. From the perspective of two-stage value chain of innovation, data from 30 provinces in mainland China from 1999 to 2018 were used to do the spatial panel test. It is found that the innovation factor model can solve the shortcomings of the traditional model well and get some meaningful conclusions.