Differences in Urban Innovation Paths: Empirical Evidence Based on a Finite Mixture Model

Innovation is the core driver of high-quality economic development. Based on an innovation analysis framework and using a finite mixture model (FMM), this paper endogenously clusters the innovation paths of 261 cities in China into multiple patterns during the period 2003–2019 and explores the causes of heterogeneity. The study shows significant heterogeneity in Chinese cities’ innovation paths, which can be objectively classified into four paths by the FMM. Meanwhile, three major factors, namely, the innovation foundation, environment, and linkages, play distinguished roles in different innovation paths, and the synergy of the three factors contributes to improving the level of innovation. More importantly, more than 85% of innovation paths are optimized during the study period; upgrading industrial structure, increasing marketization levels, and attracting foreign direct investment help explain the heterogeneity of different innovation paths. Therefore, the innovation foundation, environment, and linkages should be improved to effectively play the synergistic effect on innovation output to help high-quality economic development.