Chapter 7 evaluates how innovation policy and industrial clustering jointly influence corporate innovation efficiency, drawing on data from over 7000 Shenzhen-based firms. Building on prior policy analyses, the chapter examines how government support interacts with “innovation swarms”—networks of firms engaged in shared innovation processes. Results indicate that firms within such ecosystems experience higher innovation productivity and output, particularly in environments that encourage knowledge exchange and collaborative learning. The findings suggest that innovation policies are most effective when combined with spatial concentration and market-driven cooperation, contributing to a more scalable and dynamic innovation ecosystem.