Abstract:Based on the panel data of urban agglomeration in the middle reaches of Yangtze River from2003 to2016,the index system of higher education agglomeration,innovation and entrepreneurship is constructed and the test of spatial autocorrelation and model selection are carried out by using the calculated composite index,then the spatial economic geographical weight matrix is being introduced. To study empirically the effect of higher education agglomeration on innovation and entrepreneurship it establishes the spatial panel Durbin model. The results show that there are different degrees of spatial spillover effect between innovation and entrepreneurship,but fiscal expenditure does affect the ability of innovation but not the level of entrepreneurship in the mean time,the influence of the number of College Teachers on Innovation and Entrepreneurship is not significant. The number of universities not only inhibits the ability of innovation and entrepreneurship itself,but also promotes the innovation ability of neighboring cities. At the same time,the number of college or university students will restrain the innovation ability of the neighboring cities while promoting the innovation and entrepreneurial ability of itself; Finally from the perspective of financial expenditure and the development of colleges and universities,the paper puts forward some policy suggestions to promote innovation and entrepreneurship of urban agglomeration in the middle reaches of Yangtze River.