Abstract:The paper establishes Spatial Durbin Model and exploits provincial panel data of China to study the driving mechanism and effects of S&T service sector agglomeration on regional innovation capability from the aspects of local effects and inter-region interaction.The results indicate that the agglomeration of S&T service sector has an significant positive effect on improving the region innovation capability because of the knowledge and technology spillover and competition effect.However,due to the“siphonic effect”,agglomeration of S&T service sector has restrained the improvement of innovation level in the neighboring area to some extent. Based on the empirical conclusions,some policy suggestions are put forward to promote regional innovation capability.
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