Abstract: Based on the theory of entrepreneurship and knowledge spillover, this study analyzed the dataset of newly created entrepreneurial firms in the manufacturing sector in 31 regions of China between 2010 and 2014 by the system generalized method of moment estimator. The results showed that:(i) Regional knowledge production generated both positive intra-and inter-regional externalities to the activities of new venture creation.(ii) The intra-regional effects of knowledge production were stronger than the inter-regional ones.(iii)The effects of regional knowledge production were stronger for new venture in knowledge-intensive industries than in non-knowledge-intensive industries.