The Mechanism and Impact of Multidimensional Proximity of Common Technology on Industrial Collaborative Agglomeration and Innovation: Irradiation Technology and Guangzhou Economic Development Zone as an Example

Abstract

Purpose. The purpose of this study is to reveal the mechanism and effect of common technology multidimensional proximity on industrial collaborative agglomeration and innovation.

Theoretical Framework. Grounded in the theories of industrial collaborative agglomeration, common technology, multidimensional proximity, and industrial collaborative agglomeration innovation, this study proposed four research hypotheses and systematically examined the impact of common technology enterprises’ entry and multidimensional proximity of common technology on industrial collaborative agglomeration and innovation.

Methodology. Data were collected from the macro statistical data of five economic development zones in the Guangdong-Hong Kong-Macao Greater Bay Area, and the micro-operational data of leading common technology enterprise Group A. Using the Difference-in-Differences (DID) model and Ordinary Least Squares (OLS) regression methods, the study detected the dynamic impact of common technology enterprises' entry and multi-dimensional proximity on regional industrial agglomeration and innovation from 2004 to 2023.

Findings. All four hypotheses were supported. Results show that the entry of common technology enterprises significantly promotes industrial collaborative agglomeration and innovation, supporting H1 and H2. Additionally, the multidimensional proximity of common technology enterprises significantly enhances industrial collaborative agglomeration and innovation, supporting H3 and H4. Among the various dimensions of proximity, cognitive proximity exhibits the strongest driving effect, creating a progressive influence in the order of “cognitive > geographical > organizational.” Lastly, the combined impact of common technology and multi-dimensional proximity acts as a “dual-wheel drive” for economic development, where technological spillover and proximity effects mutually reinforce each other.

Conclusion and Recommendations. This study reveals common technology as the foundational structure of industrial collaborative agglomeration and innovation; highlighting how key common technology creates iterative and collaborative empowerment effects on industrial agglomeration and innovation. Multi-dimensional proximity and common technology function both independently and through dynamic interactions to foster industrial collaborative agglomeration and innovation. The research findings provide valuable theoretical insights and practical guidance for governments in optimizing industrial park planning, enterprise location selection, and common technology policy development.