Abstract:This article is based on the product space theory from the perspective , the correlation density on the influence of China"s enterprise innovation and absorptive capacity on product density associated with the Chinese enterprise innovation the adjustment of the relationship between effect, the study found that: first, different product link density within a geographical area of China have made a significant positive influence on enterprise innovation, products in the province are associated density is even more important for the promotion of enterprise innovation; Second, the absorption capacity of an enterprise can help it improve its innovation ability by taking advantage of knowledge spillover and resource endowment in different geographical areas. Third, the products in the province of enterprise level correlation density for general trade type enterprises, domestic enterprises and the eastern province of positive promoting effect of enterprise innovation and high technology industry bigger and more significant, in addition, the absorption capacity of different enterprises in the province of product density associated with the Chinese enterprise innovation the adjustment effect has the difference in the relationship, the Midwest enterprise of absorptive capacity of the relationship between negative adjustment effect, other enterprise classification of absorptive capacity of the relationship between positive adjustment effect.