Abstract: Can the geographical proximity of cities within a urban cluster to the knowledge pool of technological innovation in the central city effectively translate into a driving force for advancing their modern industrial systems? This study empirically examines the impact of technological innovation in central cities on the development of modern industrial systems in city clusters, grounded in the theoretical framework of knowledge spillover economics. Evidence reveals that knowledge spillovers from central cities’ technological innovation accelerate inter-city technology transfer and collaboration, mitigate technological development imbalances within the cluster, and alleviate technological rigidity constraints. Consequently, this drives the modernization of industrial systems in non-central cities, particularly within clusters characterized by optimized development gradients and those aligned with the inland-oriented national strategy. Enhancing digital infrastructure, strengthening judicial protection of intellectual property rights, increasing government innovation preferences, and elevating fiscal decentralization levels can effectively amplify the positive effects of central cities’ technological innovation. These findings offer practical insights for government departments in advancing innovation-driven development strategies.

Key words: center cities’ technological innovation, knowledge spillover, modern industrial system development