Abstract: This paper selected 65 Chinese universities affiliated to the Ministry of Education and more than forty thousand industrial enterprises as research objects, using 2003-2007 industrial enterprises data, combined with the latitude and longitude coordinates, the sixth General Census data, cities and counties nationwide financial data and using ACF production function to measure the total factor productivity of industrial companies and constructing the relationship matrix between universities and enterprises, to explore the impact of knowledge spillovers in micro-enterprise productivity on a limited spatial extent. The results show that the knowledge spillover of universities near enterprises has a significant positive impact on total factor productivity of industrial companies, namely the long-term performance of industrial enterprises, but it has no significant effect on the markup of industrial enterprises, namely the short-term performance of industrial enterprises. At the same time, there is difference between different types of universities’ knowledge spillover on the long-term performance of industrial companies and the comprehensive universities have the most significant effect. Universities in western region have more significant effect compared with those in eastern and central region.