Review of Relationship between Business Innovation and Geographic Areas in China

Abstract

Business innovation plays an essential role in its development. There are various factors affecting business innovation. Business innovation plays a vital role in its development. There are many factors that affect business innovation. Based on the existing research results, this paper sorts out and summarizes the research results of geographical characteristics, business innovation and the relationship between the two. The research results show that geographic proximity can promote business innovation through knowledge and technology spillovers, and multi-dimensional proximity and combination models such as cognition and institutions will bring about differences in corporate innovation performance. This article can help investors evaluate the above factors, determine the direction of investment, and make the right investment to promote economic development. This can also encourage the growth and expansion of potential SMEs.