Abstract:Research on market integration has launched a rich discussion on the link between market integration and economic outcomes, with related studies focusing on the macroeconomic level and few studies exploring micro-level organizational decisions in market integration and how they converge to industry-level evolution. This study takes the patent agency industry in science and technology services as a window of observation, drawing on an organizational ecology perspective to reveal the impact of the spatial diffusion of science and technology services across regions on the local industrial evolution. The findings show that the impact of foreign agency entry on local market equilibrium is reflected in attracting the entry of small organizations in the short term but turning to inhibit it in the long term, reflecting both competitive crowding out and spillover effects on incumbents.