Abstract
Based on the database of Chinese industrial industries, a model is constructed to empirically analyze the interaction between knowledge spillovers and R&D in manufacturing industries; the mean productivity values of county and city regions have a significant positive effect on firms' R&D, which gradually decreases; an interaction term between the number of neighboring firms and the average total factor productivity of industries in different regional scopes is added, and the greater the number of neighboring firms in the neighborhood, the greater the spillover effect on research and development. In order to increase the innovation input of companies, they need to be given the space to fully exchange ideas.