Research on the Impact of Internet Industry Agglomeration on Regional Innovation Capability: A Perspective from the Chinese Academic Community

Abstract

The Chinese internet industry had witnessed a trend towards concentrated development, with the high-tech, high-knowledge, and high-value-added sectors of the internet industry playing a pivotal role in driving regional innovation and development. This article, grounded in a thorough review of recent literature, provided a macro and micro-level depiction of the developmental landscape of the Chinese internet industry. This encompasses the concepts of internet industry concentration and regional innovation capacity, exploring the impact of the aggregation of the Chinese internet industry on regional innovation capabilities. Through literature examination, this paper revealed that the concentration of the Chinese internet industry tended to occur in urban clusters with higher levels of economic development. However, due to variations in basic conditions such as industrial development and resource allocation in each city, the influence of internet industry concentration on innovation might differ by region. Simultaneously, reinforcing the aggregation of the internet industry within regions emerged as a crucial aspect for enhancing regional innovation capabilities and driving high-quality regional development. In conclusion, this paper, from the perspective of literature review, posited the developmental disparities in the Chinese internet industry and regional innovation, along with suggesting policies for regional innovation development.

Share and Cite:

Deng, J. (2024) Research on the Impact of Internet Industry Agglomeration on Regional Innovation Capability: A Perspective from the Chinese Academic Community. Open Journal of Business and Management, 12, 1411-1428. doi: 10.4236/ojbm.2024.123076.

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  2. 2. Bi, K. X., Ma, H. Z., & Huang, P. (2012). Research on the Factors Influencing the Interaction between Informatization and Process Innovation in Manufacturing Enterprises. China Soft Science, No. 10, 138-147. [Paper reference 1]

  3. 3. Chen, J., Liang, L., & Wu, H. (2013). Research on the Relationship between Industrial Agglomeration and Innovation Performance under the Background of Open Innovation: A Case Study of China’s High-Tech Taking the Art Industry as an Example. Studies in Science of Science, 31, 623-629. [Paper reference 1]

  4. 4. Chen, S., Lyu, Z., & Zhang, N. (2017). Empirical Study on the Impact Mechanism of Enterprise Informatization on Innovation Capability: Based on the Resource View Theory. Soft Science, 31, 44-48. [Paper reference 1]

  5. 5. Cheng, L. W., Sun, W., & Wang, J. Y. (2010). Motivation for Attracting Investment, Characteristics of Foreign Investment, and Efficiency of Independent Innovation in China’s High tech Industries. China Soft Science, No. 7, 45-57 164. [Paper reference 2]

  6. 6. Cheng, Z. H. (2015). Spatial Econometric Analysis of the Impact of Industrial Agglomeration on Regional Innovation. East China Economic Management, 29, 59-65, 87. [Paper reference 1]

  7. 7. Cheng, Z. H., & Lyu, J. (2015). Industrial Agglomeration, Spatial Spillover, and Manufacturing Innovation: Spatial Metrology Based on Urban Data in China Analysis. Journal of Shanxi University of Finance and Economics, 37, 34-44. [Paper reference 1]

  8. 8. Chu, Y. L., & Chu, J. W. (2016). Research on the Relationship between Informatization and Technological Innovation: A Comparative Analysis Based on the Three Major Regions of East, West, and Central China. Intelligence Journal, 35, 61-65, 30. [Paper reference 1]

  9. 9. Cui, B. (2010). Research on the Current Situation and Trend of Internet Development in China. Information and Computer, No. 22, 86-87. [Paper reference 1]

  10. 10. Dai, Z. M., & Yu, Z. W. (2023). The Impact of Internet Development on the Innovation Ability of the Yangtze River Delta Urban Agglomeration: Based on the Threshold Effect of Government Support for Science and Technology. Soft Science, 37, 97-103. [Paper reference 1]

  11. 11. Dang, W. J., Zhang, Z. Y., & Kang, J. J. (2008). The Impact of Innovation Environment on Promoting Regional Innovation Capacity in China. China Soft Science, No. 3, 52-57. [Paper reference 1]

  12. 12. Dong, Q. (2013). How Far Is the Path of Information Technology Innovation for Chinese Enterprises: Empirical Research Based on Panel Data of Electronic Information Enterprises. Journal of Management World, No. 7, 123-129, 171. [Paper reference 2]

  13. 13. Du, J., Zhang, W. K., & Ge, Y. (2017). Dual Characteristic Analysis of the Impact of Industrial Agglomeration on Regional Technological Innovation. Soft Science, 31, 1-5. [Paper reference 1]

  14. 14. Du, S., Feng, J., & Du, C. Z. (2018). The Role of Industrial Agglomeration and Market Concentration on Regional Innovation Capability: A Comparison of Manufacturing Industries in the Beijing Tianjin Hebei and Yangtze River Delta Economic Circles. Economic and Management Research, 39, 48-57. [Paper reference 1]

  15. 15. Du, W. J., & Li, M. J. (2015). Does Industry Gathering Promote Product Innovation in Enterprises: Based on the Chinese Industrial Enterprise Database Empirical Research. Industrial Economic Research, No. 4, 1-9, 20. [Paper reference 1]

  16. 16. Feng, Z. X., Wang, Q., & Hou, X. H. (2011). Government Investment, Degree of Marketization, and Technological Innovation Efficiency of Chinese Industrial Enterprises. Quantitative Economic Technology and Economic Research, 28, 3-17, 33. [Paper reference 2]

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  20. 20. Han, X. F., Song, W. F., & Li, B. X. (2019). Can the Internet Become a New Driving Force for Improving China’s Regional Innovation Efficiency. China Industrial Economy, No. 7, 119-136.

  21. 21. Huang, F. R. (2015). Countermeasures and Model Innovation for the Development of “Internet Plus” Cultural Industry. Statistics and Decision, No. 24, 158-161. [Paper reference 1]

  22. 22. Hui, N., Ma, W., & Lyu, X. X. (2021). Research on the Impact of Internet Development on China’s Regional Innovation Capability and Regional Differences. North Journal of Kyoto University of Technology (Social Sciences Edition), 21, 51-70. [Paper reference 1]

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  26. 26. Li, L., & Wang, X. F. (2014). The Impact of Geographical Proximity and Cognitive Proximity on Innovation Performance of High tech Zones: Based on Social Network Analysis. East China Economic Management, 28, 32-37. [Paper reference 1]

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  29. 29. Lyu, L., Jiang, F. X., & Wang, Y. (2017). The Impact of Industrial Agglomeration on Green Innovation: Inhibition or Incentives? Technology Management Research, 37, 235-242. [Paper reference 1]

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Conflicts of Interest

The author declares no conflicts of interest regarding the publication of this paper.

References

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[21] Huang, F. R. (2015). Countermeasures and Model Innovation for the Development of “Internet Plus” Cultural Industry. Statistics and Decision, No. 24, 158-161.
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[23] Hui, W., & Xie, P. (2019). Empirical Study on the Impact of Internet Development on Regional Innovation Capability: Taking Shanxi Province as an Example. Journal of Yan’an University (Social Sciences Edition), 41, 65-72.
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[25] Li, B., & Zhao, Y. (2014). The Impact of Internet Finance on Macroeconomy. Financial Science, No. 8, 21-28.
[26] Li, L., & Wang, X. F. (2014). The Impact of Geographical Proximity and Cognitive Proximity on Innovation Performance of High tech Zones: Based on Social Network Analysis. East China Economic Management, 28, 32-37.
[27] Lin, F., & Lin, S. J. (2022). Does “Internet plus” Promote the Development of China’s Urban Foreign Trade—From 290 Prefecture Level Cities Empirical Evidence. International Business, No. 2, 16-32.
[28] Lyu, C. C., & Shang, Y. Y. (2017). Research on the Spatiotemporal Effects of Technology Industry Agglomeration Models and Innovation Output. Management Science, 30, 64-79.
[29] Lyu, L., Jiang, F. X., & Wang, Y. (2017). The Impact of Industrial Agglomeration on Green Innovation: Inhibition or Incentives? Technology Management Research, 37, 235-242.
[30] Marshall, (2011). Principles of Economics. Commercial Press.
[31] Qiu, Y., & Zhu, Y. A. (2022). The Impact of Internet Development on Regional Innovation Capability and Heterogeneity Analysis. Jishou University Science Newspaper (Social Science Edition), 43, 65-77.
[32] Shen, D. L. (2021). Internet Popularization and Capital Market Information Efficiency—Evidence Based on Share Price Synchronization. Financial Forum, 26, 47-56.
[33] Shi, P., Song, W. F., Han, X. F., & Zhang, B. N. (2011). Spatial Correlation and Convergence Analysis of Regional R&D Technology Efficiency in China. Journal of Management, 8, 1045-1050.
[34] Shi, Z. M., & Xu, D. X. (2018). Empirical Analysis of Agglomeration Promoting the Development of Innovative Ecosystems in Strategic Emerging Industries. Science and Technology Progress Steps and Countermeasures, 35, 92-98.
[35] Song, X., & Li, L. G. (2018). Can the Service Industry Become a New Driving Force for Enhancing Regional Innovation Capabilities? Exploration of Economic Issues, No. 12, 161-171.
[36] Sun, P. Y., Han, S., & Xu, Q. Q. (2013). The Dynamic Impact of Industrial Agglomeration on Labor Productivity. World Economy, 36, 33-53.
[37] Sun, Z. Q., Li, H. H., & Lyu, Z. (2021). Comprehensive Measurement and Influencing Factors of Collaborative Innovation Efficiency in the Four Major Urban Clusters along the Eastern Coast of China. Technological Progress and Countermeasures, 38, 47-55.
[38] Sun, Z. W., Zhang, B., Wang, Y., & Niu, J. Q. (2010). Research on the Relationship between Internet Resources and China’s Provincial Economic Development. Geography Geographic Information Science, 26, 44-48.
[39] Tao, A. P., & Lyu, B. D. (2022). Research on the Impact of Internet Development on Urban Innovation: Based on the Number of Panels in 283 Cities in China Empirical Testing of Evidence. Economic and Management Review, 38, 30-45.
[40] Wang, B., & Nie, X. (2016). Industrial Agglomeration and Environmental Governance: Assistance or Resistance: From the Establishment of Quasi Natural Experiments in Development Zones Evidence. China Industrial Economy, No. 12, 75-89.
[41] Wang, C. H. (2017). Regional Heterogeneity, Industrial Agglomeration, and Innovation: An Empirical Study Based on Regional Panel Data. Zhejiang Society Social Science, No. 11, 34-41.
[42] Wang, F. H., & Wang, Y. S. (2021). The Threshold Effect of High-Tech Service Industry Agglomeration on Regional Innovation Efficiency. Statistics and Decision, 37, 91-95.
[43] Wang, J. J., Guo, S. L., & Zhang, L. P. (2018). Research on the Impact of the Internet on Enterprise Innovation Performance and Its Mechanism: Based on Openness The Explanation of Technological Innovation. Nankai Economic Research, No. 6, 170-190.
[44] Wang, P., Guo, Y. H., & Li, Y. (2020). The Impact of Internet Development on the Transformation and Upgrading of Regional Industrial Structure: Research Based on the Intermediary Effect. Industrial Technology and Economics, 39, 135-144.
[45] Wang, Y. D., Wang, B. X., & Zeng, L. (2022). Research on the Impact of High Tech Industry Agglomeration on Regional Innovation Capacity. Hebei Economic and Trade University Journal, 43, 90-99.
[46] Wang, Z. M., & Pan, D. D. (2018). Measurement and Convergence Analysis of China’s Regional Internet Development Level. Statistics and Decision, 34, 86-89.
[47] Wei, J., & Li, T. Y. (2018). Intellectual Property Protection and Governance Mechanism of Knowledge Assets in Cluster Enterprises. China Industrial Economy, No. 5, 157-174.
[48] Wei, S. H., Wu, G. S., & Lyu, X. L. (2010). The Influencing Factors of Regional Innovation Capability: Also Evaluating the Regional Differences in China’s Innovation Capability Distance. China Soft Science, No. 9, 76-85.
[49] Wu, C. Q., & Shen, Y. Q. (2019). Research on the Impact of China’s Equipment Manufacturing Industry Agglomeration on Green Innovation Efficiency. Technological Progress and countermeasures, 36, 54-63.
[50] Wu, D. (2012). Construction of Competitive Advantage in Regional Industrial Clusters: From the Perspective of the Interactive Relationship between Industrial Clusters and Regional Innovation Capability. Economy, 31, 128-131.
[51] Xiao, R. Q., Qian, L., & Chen, Z. W. (2012). Research on Innovation Efficiency and Influencing Factors of China’s High Tech Industry. Management Science, 25, 85-98.
[52] Xiao, Z. L., Du, X. Y., & Fan, F. (2017). Research on the Measurement, Evolution, and Convergence of Regional Differences in China’s Innovation Capability. Statistics and Decision, No. 3, 88-93.
[53] Xie, L. L. (2015). Industrial Agglomeration and Wage “Clubs”: An Empirical Study on Manufacturing Industry in Prefectural Cities. World Economy, 38, 148-168.
[54] Xie, P., & Zou, C. W. (2012). Research on Internet Financial Model. Financial Research, No. 12, 11-22.
[55] Xie, P., Zou, C. W., & Lyu, H. E. (2015). Basic Theory of Internet Finance. Financial Research, No. 8, 1-12.
[56] Xie, S. X., Fan, P. F., & Guo, L. J. (2021). The Impact of the Internet on Enterprise Survival Risk and Heterogeneity Analysis. Quantitative economy Technical and Economic Research, 38, 140-159.
[57] Xie, Z., & Bu, W. (2018). Technology Service Industry Agglomeration, Regional Innovation Capacity, and Economic Growth: A Case Study of Beijing. Beijing Social Sciences, No. 6, 108-118.
[58] Yan, F. Z., Su, L., & Qiao, J. (2011). An Examination of the Relationship between Industrial Agglomeration Development and Environmental Pollution: Evidence from China’s Manufacturing Industry. Studies in Science of Science, 29, 79-83, 120.
[59] Yan, L. (2012). Empirical Study on the Evaluation Index System of Regional Innovation Efficiency in China. Management World, No. 5, 174-175.
[60] Yang, R. F. (2013). Industrial Agglomeration and Regional Wage Gap: An Empirical Study Based on 269 Cities in China. Management World, No. 8, 41-52.
[61] Yu, L. P. (2005). Research on the Measurement Indicator System of China’s Internet Development Level. China’s Circulation Economy, No. 12, 32-34.
[62] Yue, Y. S., Li, B. and Li, R. (2017). The Impact of the Internet on Enterprise Imports: An Empirical Analysis from Chinese Manufacturing Enterprises. International Economic and Trade Exploration, 33, 57-69.
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