Abstract: Spatial knowledge spillovers not only depend on the flow of innovation factors in regions, but also are largely affected by local protectionism in economic transition countries. Using China provincial panel data of 2000-2016, the paper estimates the effect that the flow of innovation factors and local protectionism makes to spatial knowledge spillovers. The research shows that the flow of innovation factors contributes to continuous improvement of relational degree of creative commons. It makes positive effect remarkably to spatial knowledge spillovers. The research shows that local protectionism impedes the flow of innovation factors in regions. It accelerates the polarization of innovation factors advantage in regions. It makes negative effect remarkably to spatial knowledge spillovers. Considering economic distance and endogenous influence, the conclusion is still correct. The research has profound policy meaning:to improve the spill-over level of spatial knowledge, first, the flow of innovation factors must be ensured, more importantly, a modern economic system has to be established to integrate regional development, remove administrative barriers of innovation element flow and enable factor market allocation to play a decisive role in spatial knowledge spillovers.

Key words: innovation element flow, spatial correlation, local protectionism, spatial knowledge spillovers