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.