Impact of high-skilled labor force agglomeration and high-low skilled complementarity on innovative output in China

Coordinating the innovative effects of labor with different skill levels is of great significance for maximizing human capital accumulation and enhancing regional innovation capabilities. Based on cross-sectional datasets from 272 prefecture-level cities and above in China in 2010, 2015, and 2020, which include skilled labor, patent granted data, and other socio-economic factors, this study analyzes the spatiotemporal evolution characteristics of urban innovation output in China. Furthermore, using a spatial econometric model, it empirically examines the impact of high-skilled labor agglomeration and high-low skill complementarity on innovation output, as well as regional heterogeneity. The main findings are as follows: (1) During the study period, the level of urban innovation output in China steadily increased, with an evident trend of regional innovation concentration and diffusion. (2) The agglomeration of high-skilled labor, skill complementarity, and innovation output in Chinese cities exhibit significant spatial autocorrelation. (3) The enhancement of high-skilled labor agglomeration and high-low skill complementarity significantly promotes local innovation output and positively impacts the innovation output of neighboring cities. Financial development has a significant positive impact on local innovation output, while foreign direct investment and transportation infrastructure positively affects both local and neighboring innovation. In contrast, industrial specialization negatively influences local innovation output. (4) There is notable regional heterogeneity in the impact of high-skilled labor agglomeration and skill complementarity on innovation output. High-skilled labor agglomeration in the central region has the strongest promoting effect on innovation output, while high-low skill complementarity in the eastern region plays a significant role in boosting innovation output. In the western region, the increase in high-skilled labor not only promotes local innovation development but also generates spillover effects on the innovation output of adjacent cities. Therefore, regions should formulate inclusive population policies tailored to local conditions and optimize the skill structure to maximize the innovative effects of the labor force.