Abstract From the two-stage perspective of technology innovation, using panel data of Chinese provinces from 2004 to 2015, this study analyzes the effect mechanism of urbanization on innovation efficiency of China, for the characteristics of the R&D innovation efficiency. The study found that: ①In recent years, urbanization inhibited technology development efficiency, but promoted the technological transformation efficiency, namely this impact on innovation efficiency had a stage difference; ②This kind of impact on technological development efficiency is conditional, and with “U” type of nonlinear relationship, when the level of urbanization exceeding a certain critical value，it will promote technological development efficiency, in the new normal of economic, there is still a part of the central and western provinces which are at a technology development efficiency dilemma; ③In the process of urbanization, if the fusion effect is taken into consideration with foreign capital, improving the financial environment, strengthen environmental regulation and other factors, it will help to reverse the negative effects of innovation efficiency in the early days of the low urbanization level.
2017, Vol. 14 
