Abstract: By decomposing the knowledge potential energy into the three dimensions, i.e., stock of knowledge resources, ability of knowledge creation and transformation, capacity of knowledge assimilation and retention, this paper constructs a spatial weight matrix based on the institutional proximity level, so as to conduct a theoretical analysis of the role of knowledge potential and its three dimensions in regional technological innovation under the institutional proximity. Then it makes use of the spatial Tobit model to make an empirical test. The results show that the impact of the knowledge creation and transformation ability, the stock of knowledge resources and the capacity of knowledge absorption and retention on the regional technological innovation efficiency is significantly positive, and these three impacts are in descending order. The former two are endogenous driving force of innovation. The main limiting factor of the spatial spillover effect of knowledge potential energy is the institutional environment rather than the geographical environment, the higher the level of the regional institutional proximity, the smaller the loss of potential energy spillover. The knowledge potential energy has a positive spatial spillover effect on technological innovation.

Key words: knowledge potential energy; regional technological innovation efficiency; institutional proximity; spatial effects.