| This paper use the method of the theoretical and empirical analysis, in order to answer two main questions:First, do specialisation and/or diversity of regional industry strcture is conducive to the innovation performance. Second, what is the impact of the degree of competition on regional innovation performance. This paper summarize the static and dynamic externalities, including related theoretical research and empirical studies. And then use the related theory to analyse how to improve the regional innovation performance. In succession, this paper use knowledge production function to construct a mathematical model and use the related panel data of high-tech industry and analyse the regression results.This paper regards that the specialisation of industry structure is conducive to improving the regional innovation performance from the efficiency static of innovation. From the long-term and the growth potential stability of regional innovation, diversity is more conducive to enhancing the regional innovation performance. Moreover, the structure of monopolistic competition is most conducive to enhancing regional innovation performance.The result of empirical study shows that the specialisation of regional industry structure is conducive to enhancing the innovation performance. On the whole, the impact of diversity is very restricted, but competition make against innovation. In the core innovation zone, the result shows regional the specialisation and diversity of industry structure are both conducive to improving the innovation performance, but competition is not. In outlying areas, the specialization of industry structure and competition are both conducive to enhancing regional innovation performance, but the diversity of industry structrue is not. |