Impacts of Manufacturing Specialized and Diversified Agglomeration on the Eco-Innovation Efficiency-A Nonlinear Test from Dynamic Perspective

Eco-innovation is the main driver of realizing the coordinated development of resource, environmental and economic systems. This paper measures regional eco-innovation efficiency (EIE) by using the Super-Slack Based Measure (SBM) model with undesirable outputs and distinguishes different agglomeration patterns based on Chinese data of 21 manufacturing sub-industries of 30 provinces. In particular, from the perspective of the dynamic evolution of manufacturing agglomeration, the nonlinear effects of specialized and diversified agglomeration on EIE are investigated based on panel threshold regression models. The results indicate that China's EIE shows a U-shaped changing trend. The impacts of specialized and diversified agglomeration on EIE are nonlinear and have significant three-threshold effects. There exist a U-shaped relationship between specialized agglomeration and EIE, and an S-shaped relationship between diversified agglomeration and EIE. In terms of eco-innovation, the development of diversified agglomeration is superior to that of specialized agglomeration. Overall, there is still much room for more than 70% of provinces in China to increase their EIE by optimizing the layout of manufacturing specialized and diversified agglomeration. To improve the EIE and achieve sustainable economic growth, differentiated agglomeration policies should be formulated in various stages and regions. In addition, the driving mechanism of eco-innovation should be strengthened.