Accumulation and Spatial Spillover of Knowledge Capital, and Formation of Urban Agglomeration Innovation Centers: A Case Study of the Yangtze River Delta Urban Agglomeration

Abstract

Based on the three-region local spillover (LS) model extended by new economic geography, this paper theoretically analyzes the formation mechanism, structural characteristics, and spatial evolution of urban agglomeration innovation centers. It subsequently conducts an empirical test on the Yangtze River Delta urban agglomeration, recognized for its strong innovative urban agglomeration attributes. There are four findings. (1) The cyclical accumulation of causality underlying urban agglomeration innovation centers is rooted in the accumulation of knowledge capital. As knowledge capital aggregates, urban innovation costs gradually decline, thereby fostering the endogenous agglomeration of knowledge capital. This cycle repeats and ultimately facilitates the formation of innovation centers. (2) The spatial spillover of knowledge capital serves as the primary driver in establishing innovation centers. Variations exist between local and cross-regional spillovers of knowledge capital across different regions of urban agglomerations, further reinforcing the “innovation center-peripheral city” structure. (3) The interactive innovation within urban agglomerations is characterized by knowledge spillovers from the innovation centers, which solidify the “agglomeration” structure, while the absorptive role of peripheral cities enhances the competitiveness of the “center,” ultimately improving the overall welfare of the urban agglomerations. (4) In the Yangtze River Delta urban agglomeration, home market effects and knowledge capital spillover effects support the establishment of innovation centers, while market crowding effects exert a restraining influence. The development of urban agglomeration innovation centers is a crucial cornerstone for advancing national innovation-driven development strategies and optimizing the innovative development framework of urban agglomerations. This paper offers new perspectives on addressing the siphoning effect of central cities and optimizing the allocation of innovative resources, while also providing a theoretical foundation and decision-making references for establishing innovation systems and urban agglomeration innovation centers.

Keywords

knowledge capital accumulation / knowledge spatial spillover / urban agglomeration innovation center / new economic geography

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Higher Education Press