This paper investigates the interplay between human capital and urban innovation in China's Yangtze River Economic Belt (YREB) from 2011-2020 using panel data from 108 cities and a two-way fixed effects Spatial Durbin Model. Findings reveal spatial heterogeneity in urban innovation, with diffusion from eastern coastal cities to western cities. Low-level human capital hinders innovation, while intermediate and high-level human capital enhances it. Spatial spillover effects exhibit an opposite trend, with insignificant impacts in downstream cities like Shanghai and Nanjing. Policy recommendations include increased investment in human capital and technological innovation, enhanced talent spillover, and improved basic education.

Fenghua Wen, Shan Yang, Daohan Huang