Abstract: The development of the producer service industry and the promotion of deep industrial integration and innovation drive are of great significance for optimizing the industrial structure and achieving high-quality economic development. Based on the provincial panel data from 2005 to 2019, this paper uses the moderating effect and threshold effect methods to empirically analyze the impact of industrial integration on technological innovation under different levels of agglomeration of producer services. It is found that industrial integration and producer services agglomeration can significantly promote technological innovation, but the excessive aggregation of producer services makes industrial integration inhibit technological innovation, and the impact of industrial integration on technological innovation is also regional heterogeneity. The threshold effect analysis shows that the impact of industrial integration on technological innovation is not only regulated by the agglomeration of producer services, but also has a transition change with the increase of the agglomeration of producer services. On the whole, the impact effect shows a trend of first promotion and then inhibition, and the promotion effect increases first and then decreases.
