Technological Innovation, Industrial Structure Upgrading, and the Coordinated Development of Regional Economies

The purpose of this study is to systematically examine the impact of technological innovation on the coordinated development of regional economies and its internal mechanism. It is aimed at revealing whether and how technological innovation promotes the coordinated development of regional economies, and further identifying its heterogeneity characteristics and boundary conditions in the space–time dimension. The research was conducted using panel data for 258 prefecture-level cities in China from 2011 to 2021. This study found that technological innovation significantly promoted the coordinated development of regional economies; this effect was more prominent in China’s eastern region and the Yangtze River Economic Belt. The mechanism test shows that technological innovation can optimize regional resource allocation and narrow the development gap by promoting industrial structure upgrades and rationalization. Further analysis shows that the level of marketization has a nonlinear regulatory effect on the coordination effect of technological innovation, with two threshold levels. A heterogeneity analysis reveals significant differences in the effects of technological innovation in different regions in China, especially in the western region and the northwest side of the Hu Changyong line. The research leads to four key policy recommendations. First, it is important to strengthen the core driving role of technological innovation and implement regionally differentiated innovation support policies. Second, industrial structure upgrades should be encouraged through industrial chain coordination. The third recommendation is to improve the market-oriented institutional environment and minimize barriers to factor flow. Fourth, supporting coordinated policies, such as optimizing human capital and introducing high-quality foreign capital, is necessary to establish a sustainable long-term mechanism for regional coordinated development.