| In 2006, China put forward to build’an innovative country’till 2020, regarding the technical innovation as the core driving force of economic and social development and relying on scientific and technological innovation to promote the national comprehensive strength. The party raised Innovation Driven Development Strategy on the 18th People’s Congress. The strategy is that a combination of scientific and technological innovation and industrial development can help improve China’s capacity for further independent innovation development, thus China will seize the historical opportunity of science and technology revolution. With the development of China’s scientific and technological innovation, metropolitan innovation gradually plays a significant role in the regional competition.On this background, this study assesses the level of industrial agglomeration, specialization and diversification of manufacturing and service industries based on the research of 16 cities in Yangtze Delta metropolitan. After that, empirical analysis method is used to study the influence of industrial agglomeration specialization, diversification and other factors on metropolitan innovation and the mechanism. The result shows that:(1) the Yangtze river delta metropolitan innovation is of high level, with effective innovation activities, highly activated subjects. The innovation activities mostly occurr in the fields with low technical level, in the fields with high level of technology the innovation activities are less active. Innovation activities agglomerate in some cities, thus the overall innovation level is not equilibrium; (2) the specialization and diversification of manufacturing and diversification of service industry agglomeration have a great influence on the metropolitan innovation; (3) for the fields with low technical level and especially that promoted by inspiration, the agglomeration of service industry in river delta metropolitan plays a more vital role. Based on these results, policy suggestions are pointed out to promote the development of industrial agglomeration and effectively play its role to accelerate the innovation in Yangtze river delta metropolitan, such as:comprehensive metropolitan innovation planning; reasonable layout of industrial agglomeration; effective industrial specialization, diversification agglomeration; efficient metropolitan innovation system; good knowledge application ability of metropolitan; excellent metropolitan innovation environment. |