Domestic and International Dual Circulation Linkage and Regional Innovation Capability Enhancement under Open Innovation

Under the synergy of domestic and international “dual circulation”in China, how to realize “self-reliance” in “openness” is an urgent problem of technological innovation. Based on the panel data of Chinese provinces from 2011 to 2021, the paper firstly analyzes the linkage effect between domestic and international cycles by using panel vector auto regressive model. Secondly, it constructs two-way fixed effects model to analyze the impact of the dual circulation linkage on the regional innovation capacity, and the role of open innovation in it. The results of the study show that: first, there is a significant linkage effect between the domestic and international cycles in Chinese regions, second, there is a positive effect between the dual circulation linkage and the enhancement of regional innovation capacity, third, after further incorporating open innovation, it is found that the interaction and synergies between the domestic and international innovation factors have a positive moderating effect on the positive effect of the dual circulation linkage and the positive effect on regional innovation capacity.