The Effect Of Knowledge Spillover On Regional Innovation—Based On Virtual Spatial Proximity

With the development of the division of labor and deepening of globalization and integration, the world economic pattern gradually evolved into massive economies based on regional innovation capability. In this process, one thing played an important role: spatial proximity and based on which Knowledge spillover. Both of them make enterprises full use of local resources surrounding clusters, and common culture, values, to establish a healthy competitive relationship. However, with the development of multinational corporations, knowledge trade and ICTS, rely of regional innovation on the spatial proximity seems diminishing, so new changes appears among spatial proximity, knowledge spillover and innovation.The research on effects of knowledge spillovers on innovation mostly focus on geographical proximity at present. In fact, the virtual proximity played an important role in the process of regional innovation, one of the spatial economical school said,with the development of information an communication technology ,especially the internet and instant message, the space seems to be extrusion(Morgan,2004).In this case, R&D expenditure, innovation pattern , speed and range are all changed ,not relying on geographical proximity extremely. So it is necessary to discuss the knowledge spillovers based on virtual spatial proximity concerned with China.The aim of this paper is to discuss the effect of knowledge spillovers based on virtual spatial proximity on innovation, and to supply theoretical support to the purpose of develop information and communication industry. The discussion in this paper first goes to the sophisticated theory of division of labor as well as regional innovation at home and abroad, and then defined virtual space proximity and the features of the relevant concepts, and then theoretical analysis of knowledge spillover effects on innovation. Finally the introduction the relevant data of Zhejiang, Jiangsu and Shanghai, the results of data analysis strongly supported the argument of this article.