How Does the Scale and Functional Diversity of the Innovation Cooperation Network Affect Local Innovation? Township-Level Evidence from Beijing

The innovation cooperation network (ICN) drives innovation. However, how its network diversity affects local innovation needs further exploration. This paper examines the effects of ICN’s scale and functional diversity on local innovation. Employing the township-level co-invention network in Beijing, we analyze the evolution of the scale and functional diversity from 2010 to 2020, and explore their impacts, as well as the effects of their interaction, on local innovation. Moreover, the relationship between network and Jacobs’ diversity is further discussed. The results show that the township-level scale and functional diversity of the ICN in Beijing have increased by over 40%, accompanied by a transformation in the core–periphery distribution pattern. Both scale and functional diversity significantly contribute to local innovation, but manifest as inverted-U relationships, and they substitute for each other in promoting innovation. Furthermore, a substitution effect also exists between network and Jacobs’ diversity, though not robustly. Research highlights the role of scale and functional diversity in the ICN. It emphasizes that local governments need to conduct more precise management and adjustments in light of the heterogeneity of network connections in different scales and sectors within the ICN, in order to boost local innovation and foster regional development.