This paper studies the relationships between network capabilities and innovation development in the context of two types of innovation networks: scientific knowledge networks (SKN) and technological knowledge networks (TKN). Focusing on two types of network capabilities, namely acquisition capability and control capability, the paper uses spatial regime models to compare the impacts of multiple factors on different spatial regimes. The main conclusions are the following. First, as regards SKN, the political-administrative hierarchy has shaped the spatial evolution of acquisition capacity, forming a pattern consisting of three dominant cities (Beijing, Shanghai, Nanjing), three subsidiary cities (Guangzhou, Hangzhou, Wuhan), and multiple lesser centers (Tianjin, Chengdu, Xi'an). Moreover, high control capability cities are mainly clustered in the coastal areas, specifically, one monocentric city (Beijing) and two polycentric metropolises (Shanghai, Wuhan). Second, for TKN, cities with high acquisition and control also are mainly found in coastal areas, with Shanghai and Beijing dominating network capabilities. The model's analysis confirms the positive effect of network capabilities on innovation development, especially in scientific knowledge networks, and the driver for regional innovation development appears to have shifted from global pipeline (globalization) to local buzz (localized talents). This paper concludes with suggestions regarding network capabilities' potential to reduce regional inequality and achieve sustainable development of regional economies. Sustainability 2019, 11, 4770 2 of 21With the deepening of the globalization process, economic activities undertaken by multinational corporations began to integrate talents, information, technology, and other production factors on a global scale [2]. Innovation achievements spread around the world, influencing global production networks and other world economic patterns [3,4]. With respect to global cooperation, a network society characterized by "spaces of flows" has emerged [5]. Moreover, network related theories, such as the global production network and the world city network, attempt to explain the new regional development patterns.Characterized by knowledge spillover, a regional innovation network is formed by long-term formal or informal cooperation and interaction between innovative subjects such as enterprises, universities and research institutes, local governments, and intermediary service agencies [6,7]. The "spillover" of new knowledge and innovations from such networks is a vital force in regional development [8-10]. Regional innovation networks provide access to diverse forms of knowledge, technology, and information; and network capabilities are about using these assets effectively [11,12]. In other words, network capabilities comprise the ability to acquire external resources and manage multiple relationships competently [13]. Also, network capabilities may reduce regional inequality and play a significant role in creating competitive ad...