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Abstract The spillovers of knowledge and innovation exist space barrier, and high speed rail further breaks the gap of regional space, reduces the distance of time and space, and promotes the development of knowledge intensive industry which is characterized by knowledge and innovation. Construct the provincial panel data of 2006 to 2015 and use fixed effect to study the impact of high speed rail construction on the development of the knowledge intensive service industry from the regional level and the industry level in China. Find that the high speed rail construction has a positive impact on the increase of the number of practitioners of the knowledge intensive service industry in China and plays a promoting role in the fixed assets investment of knowledge intensive service industry in Midwest. Fully illustrated, the high speed rail construction can improve the regional investment environment, break the regional barriers, promote knowledge spillovers, accelerate the flow of factors, and has great significance to the development of knowledge intensive service industry and industrial upgrading in the central and western regions. That further confirmed the correctness and the necessity of the construction of high speed rail in Midwest.
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