Abstract:This article starts from network effect, focusing on the mechanism of ICT(Information and Communications Technology)to balance the spatial distribution of innovation. A threshold regression model was constructed using the Yangtze River Delta Economic Zone panel data to examine the threshold effect of the contribution of various innovation agents to urban innovation output under different Internet penetration. The study found that within the sample area, the innovators in cities with high Internet penetration had higher marginal contributions to innovation output. The Internet penetration rate of 13.67% and 38.98% is the two threshold values of the marginal contribution of the innovation subject. After reaching 38.98%, the innovation efficiency of universities, foreign-funded enterprises and consumers is maximized. At the early stage, the central cities were the first to reach the threshold value of Internet penetration. When the rapid development of internet infrastructure eliminated the “Access gap” between cities, most cities have broken through the threshold condition of internet popularization. The rapid popularization of Internet promotes the spatial distribution of innovation to be balanced, which creates the condition to get rid of polarization trap. Based on this, this paper puts forward some suggestions for implementing the strategy of innovation-driven development and coordinated regional balanced development from the level of urban agglomerations. Paying attention to the innovation development of central cities to concentrate on breaking through the innovation of key technologies. Taking the development of digital economy as an opportunity, China will optimize the spatial distribution of innovation. By promoting the coordinated development of new-generation information infrastructure, incorporate innovation agents into network-effect mechanisms on a larger geographical scale.