Key influencing factors of innovation activities in China’s manufacturing enterprises: Evidence from Jiangsu Province

Based on empirical evidence from enterprises in Jiangsu Province, this paper studies key influencing factors of their innovation activities at the micro level. Results show that a “threshold effect” and a reversed U-shaped relationship exist between an enterprise’s size and intensity of its innovation input when factors such as brand, entrepreneur background, HR, industrial and regional differences are controlled. Agglomeration effect is found influencing an enterprise’s innovation activities negatively rather than positively. A non-linear relationship is also found between an enterprise’s innovation activities and export ratio, showing a “capture effect”. A behavior mode of the effects of these influencing factors on innovation activities of China’s manufacturing enterprises is established and implications are provided.