Abstract:   Market integration can enhance the stable development of the national market, and local government performance can promote the development of regional markets, both of which are the external institutional environment faced by market development, and it is of great significance to study the impact of the two on the innovation of high-tech industries under the same framework. Based on the theoretical analysis of the relationship among market integration, local government performance and high-tech industry innovation, this paper took 30 provincial-level regions in China from 2009 to 2019 as research objects, and systematically studied the relationship between the three based on the simultaneous equation model and the panel threshold model. The results showed that market integration has a good effect on the innovation of high-tech industries. The performance of local governments has a good effect on the innovation of high-tech enterprises; local government performance plays a negative mediating role in the effect of market integration on high-tech industry innovation; the performance of local governments plays a positive moderating effect in the role of market integration on the innovation of high-tech industries; and local government performance plays a positive moderating effect on the effect of market integration on high-tech industry innovation. The research conclusion will have certain practical enlightenments for the construction of a unified national market, which will promote the innovative development of high-tech industries, and better exert the role of local governments in promoting enterprise innovation. Accordingly, it is necessary to continue to deepen the construction pattern of the unified large market, and coordinate and unify rationally the relationship between the construction of a large market and the performance of local governments. For areas with low local government performance, the pace of construction of a unified market can be appropriately slowed down.

Key words: market integration, local government performance, innovation of high-tech industries, moderating effect