Abstract:Scientific and technological innovation is an important factor in realizing industrial kinetic energy conversion and efficiency improvement. Based on the panel data of 30 provinces in mainland China from 2003 to 2019, this paper uses the system generalized method of moments and the mediating effect model to empirically test the impact and mechanism of science and technology service industry agglomeration on the improvement of industrial total factor productivity. The research results show that: (1) Science and technology service industry agglomeration significantly promotes the improvement of industrial total factor productivity, and this conclusion is still robust after changing the variable measurement and model estimation methods. (2) The temporal heterogeneity test shows that compared with 2003-2013, the promotion effect has been significantly enhanced after 2014, which is in line with the policy expectation of accelerating the development of science and technology service industry in China. (3) The results of the mediation effect test show that the agglomeration of science and technology service industry indirectly improves industrial total factor productivity through three channels: driving innovation in the entire industrial chain, reducing industrial transaction costs, and promoting the optimization and upgrading of industrial structure. This study provides theoretical reference and policy inspiration for promoting the deep integration of innovation chain and industrial chain and realizing high-quality industrial development led by technological innovation.