Abstract The long-term “external circulation” development model of China's economy leads to the heavy dependence on imports of intermediate products. For China's manufacturing industry clusters, the innovation power of micro enterprises cannot be transformed into the overall innovation force. Based on micro enterprise data, starting from the unique research perspective of “intra-industry and inter-firm”, this paper uses the “neighboring effect” model to deeply explore the transmission mechanism of neighbor enterprises' import of intermediate products on the innovation ability of peer enterprises. The impact of neighbor imports on the innovation of enterprises in the cluster is reflected in the negative “cost chasing effect” and positive “quality competition effect”, that is, the import quality of intermediate products can directly affect the imitation innovation and original innovation ability of enterprises; the innovation spillover caused by the “quality competition effect” of import neighbors can be realized through ordinary trade channels, human capital channels and market scale channels; the government's continuous innovation incentive and market-oriented system reform is conducive to the “double chain integration” of industrial chain and innovation chain and the improvement of innovation “quantity and quality”.
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