Whether the entrepreneurship can be stimulated to promote the agglomeration of high-tech industries in space depends on the change of institutional environment. This paper systematically discusses the influential mechanism of institutional environment and entrepreneurship on high-tech industry cluster theoretically, and conducts empirical test using panel data of 30 provinces and autonomous regions in China from 1997 to 2009 and 2008 to 2014.The result shows that stimulating entrepreneurship has a significant positive spillover effect on high-tech industrial agglomeration. There is a significant positive correlation between the improvement of institutional environment and the agglomeration of high-tech industries. The interaction between institutional environment and entrepreneurship significantly promotes the industrial agglomeration. In those regions where the institutional environment is more perfect, the entrepreneurship can better promote the high-tech industrial agglomeration and it has positive feedback on the institutional environment. As the entrepreneurship is gradually released, the marginal effect of institutional environment’s improvement on high-tech industrial agglomeration is rising. The differences between institutional supply and entrepreneurial spirit endowment are the important reasons for the formation of the high-tech industry gradient model. Further empirical research also finds that the relationship between the government and the market, the development of non-state-owned economy, the development degree of product market and factor market, the market’s intermediary organizations and the market’s legal environment all have positive effects on the activation of entrepreneurship with entrepreneurial functions and innovative functions.The study is helpful to explain the endogenous dynamics of high-tech industrial agglomeration from the perspective of entrepreneurship. It’s also of great help to understand the situational mechanism of institutional environment affecting entrepreneurship in the context of China's transitional economic system.
