Study on the Impact of Strong Provincial Capitals on Regional Innovation Efficiency

Abstract

Strong provincial capital is an important initiative for underdeveloped regions to realize rapid regional economic development through leading by point, which is related to the overall situation of China’s economic high-quality development. This paper theoretically analyzes the internal mechanism of strong provincial capitals affecting regional innovation efficiency. The study finds that the policy of strong provincial capitals promotes the formation of the resource aggregation effect in the capital cities, attracts talents, technologies, policies, and capital and other factors, improves the efficiency and quality of innovation, and drives the development of neighboring regions. However, over-implementation of the policy will lead to a large number of “big enterprises,” which will lead to rent-seeking, waste of resources, crowding out of government subsidies and congestion effects, inhibit innovation, and lead to the loss of innovation factors in peripheral cities, dragging down the innovation level of the whole province. Therefore, the relationship between strong provincial capitals and innovation is an inverted “U” shape, and this study is of great significance for understanding the double-edged sword effect of strong provincial capitals and formulating scientific regional innovation policies.