Abstract:Cluster-based innovation is the main direction of breakthrough in implementing the national strategy of innovation-driven development in China. With reference to the law of high regional concentration of innovation activity, cluster-based innovation plays an increasingly important role in the strategy of regional development, while innovative capacity assessment is used as the scientific foundation of national innovation planning. Porter's model of national innovative capacity is used to evaluate the innovative capacity of Chinese cities, with spatial statistics employed to identify the extent of regional balance of innovation. It shows that the North China Plain and the middle and lower Yangtze Plain dominate the pattern of innovative capacity, indicating a relative regional balance of innovation. The cluster-based regional innovation strategy and innovation cluster excellence initiative are proposed to be promoted in the period of 13th Five-Year Plan, with 20 global and 30 national innovation clusters to be established for the country to extend active space in global economy. The goal of global innovation clusters is to promote the global competitiveness of industry in China by means of global resources and global R&D cooperation, while national innovation clusters are established to enhance the competitiveness of local industries across the country through local resource use and regional R&D cooperation. There exists a regional balance for these innovation clusters. Of the 50 innovation clusters proposed, 21 are located in the east coast, 23 in the middle and the West, and 6 in the Northeast. Of the 20 global innovation clusters, 9 are located in the east coast, 7 in the middle and the West, and 4 in the Northeast. Of the 30 national innovation clusters, 12 are located in the east coast, 16 in the middle and the West, and 2 in the Northeast. These innovation clusters will facilitate economic growth in the Yangtze economic belt, the Silk Road economic belt, and the Beijing-Tianjin- Hebei economic region. Of the 50 national innovation clusters proposed, 19 are located in Yangtze economic belt, 4 in the Silk Road economic belt, and 3 in the Beijing-Tianjin-Hebei economic region. In order to implement the cluster-based regional innovation strategy, the following measures should be addressed: (1) An interagency cluster work group should be built under the State Council, with National Development and Reform Commission, Ministry of Industry and Information Technology, Ministry of Commerce, and Ministry of Science and Technology to coordinate the implementation of the Innovation Cluster Excellence Initiative; (2) A local innovation network should be established around an industrial technology park, with the purpose of setting up an outstanding cluster innovation environment, where there is strong R&D cooperation among local government, firms, universities, research institutions, and nonprofit organizations; (3) Local governments, firms, universities, research institutions, and nonprofit organizations, in various combinations, are allowed to apply the cluster grant of 50 millions for a 5-year period, with the applicant to support the same amount of money for the principle of cost sharing; (4) A cluster organization from nongovernmental sectors should be established to be in charge of daily operation activities of the cluster and the implementation of the cluster grant, facilitating inclusiveness, expansion, and vitality of the local innovation network; (5) A national committee of experts on innovation clusters should be built to provide evaluation and technical assistance regarding the status of nationwide innovation clusters; (6) A national association of innovation clusters should be established to advance technical communication and cooperation across innovation clusters; (7) Innovation clusters-focused training should be offered in the nationwide schools of administration and communist party; (8) An innovation culture of seeking excellence should be nurtured, offering awards to individuals and organizations with outstanding contributions to advance of innovation clusters in the country.