How Does Synergistic Agglomeration of Productive Service Industry and Manufacturing Industry Promote Regional Innovation

Based on the theoretical analytical framework of new economic geography, this paper measures the degree of synergistic agglomeration of productive service industry and manufacturing industry by using provincial panel data from 2006 to 2016 in Central and East China, and adopts SYS-GMM to study the impact of synergistic agglomeration of productive service industry and manufacturing industry on regional innovation. The results indicate that the synergistic agglomeration of productive service industry and manufacturing industry can promote regional innovation, but the degree of synergistic agglomeration shows a significant difference in spatial distribution. Further analysis shows inconsistencies in the impact of industrial synergistic agglomeration on regional innovation. For the regions at the early and middle stages of industrialization, industrial synergistic agglomeration of productive service industry and manufacturing industry can promote innovation, while for the regions at the later stage of industrialization, industrial synergistic agglomeration of productive service industry and manufacturing industry will restrain innovation. The industrial synergistic agglomeration of productive service industry and manufacturing industry mainly acts on regional innovation through three channels, including information sharing effect, infrastructure scale economy effect and knowledge spillover effect. The above findings provide enlightenment for industrial development and adjustment in different regions.