The paper makes use of the manufacturing census data in China to study the effect of agglomeration externalities on the enterprise innovation ability on the basis of different enterprise scale and agglomeration(city)scale. The results indicate that innovation ability of all enterprises benefits from Marshall Externalities and Jacobs Externalities, meanwhile, the extent of impact depends on enterprise scale and agglomeration scale. Specifically, innovation ability of enterprises in small cities benefits strongly from Marshall Externalities, while that of enterprises in large cities benefits more from Jacobs Externalities. As to enterprises of different scales, small enterprises receive strong benefits from Jacobs Externalities, but large ones seldom so. In small cities, Marshall Externalities exert favorable influence on small enterprises, however, in large cities, it is Jacobs Externalities that are beneficial to small enterprises. The above conclusions can provide useful reference for making regional industrial policy and enterprise innovation strategy.
Key words
agglomeration /
innovation ability /
Marshall externalities /
Jacobs externalities
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