Analysis of the Effect of Enterprise Cluster and Knowledge Spillovers

The paper sets up the equilibrium model based on enterprise location and price. The result indicates the lower the cost of unit traffic is, and the bigger the intensity of knowledge spillover is, the more the enterprises gather. At innovation stage, the paper sets up a model about enterprise innovation. The result expresses that knowledge innovation relates to intensity of knowledge spillover, the more the enterprises gather and the bigger the intensity of knowledge spillover is, independent knowledge innovation is smaller. Finally, the paper puts forward some conclusions.