Technology Spillover Effect in China: The Spatiotemporal Evolution and Its Drivers

Abstract

Under the background of global economic integration, the technology spillover effect is playing a more and more important role in the technological progress of developing countries. In this circumstance, this paper conducted an in-depth analysis on the 12-year spatial-temporal evolution of the international technology spillover effect and its driving determinants in China during the period of 2003 to 2014. Analytical results highlighted that: (1) As a whole, the international technology spillover effect in general has shown an upward trend in China, except in 2008 and 2012, which are observed as deep-V plunge variations. The plunge in 2008 was more dramatic. After 2011, the growth rate of international technology spillover effect from international import trade and foreign direct investment (FDI) respects slowed obviously down. (2) The spatial distribution of the international technology spillover effect from FDI in China transferred from the ribbon-like pattern to the flake-like pattern, while the effect from import trade held steady with little difference in regional spatial distribution. (3) From the drivers, human capital, economic development, trade openness, and institutional factors promoted the technological spillover effect of import trade channels positively, and financial development, human capital, economic development, and institutional factors promoted the technological spillover effect of FDI channels positively.

Communication Barrier, Spillover Effect and Industrial-Technological Innovation

“…Moreover, Liu [15] took Chinese high-tech firm as the research object, researching the spillover effect of multinational firm in host, it is found that high-tech acceptance level is helpful to improve the technology of high-tech firm, but firm development also needs strong innovation ability. Similarly, Liu [2] also came to a similar conclusion. From the viewpoint of Benjamin [16], it is certain that both formal and informal associations can adjust the core management ability through spillover effect, and then exert a positive effect on innovation ability.…”

“…Technological breakthrough of scientific research units (TBASRU) is the strong foundation of firm innovation; Laboratory technology controllability (LTIC) refers to the ability to control innovation in the LTI stage, that is, the possibility of the initial intention turning into the final intention [36,37,43,44]. LTI willingness (LTIW) shown in Equation (2).…”

“…Based on the impact of the environment in the TOE model on ITI, we consider that the spillover intensity will change between cooperation and competition in different environments. In this study, define the proportion of TI as an environmental variable [2,51], as shown in Equation (11).…”

“…Various factors lead to the slowdown of China's economic growth [1]. It is not only affected by the international economic downturn but also due to the imbalance of China's domestic industrial structure [2,3].The imbalanced industrial structure in China can be observed in many aspects. For example, the overcapacity in China's energy-intensive industries; lagging behind in high-tech industries; weak service for consumer's needs, etc.…”

“…In order to overcome Chinese major challenge, the government has launched two major strategies, "The Belt and Road Initiative" [9] and "Innovating China" [10], which aim at win-win cooperation and innovative development in China's industries [2]. Under the open environment, the communication between innovation subjects is becoming more frequent, and the path of cooperation affecting innovation has gradually become an academic hot issue [11].…”