A Study On The Embodied Foreign R & D Spillover Effect

Today with the world economy becoming more dependent on each other, the technology development within a country is not only depends on domestic investment in R&D, but also relies on foreign countries' investment in their own R&D which will, directly or indirectly, affect the country's technology development by many channels. How to make good use of this positive externality is of great significance to China both practically and theoretically, now that China is on a point of transforming her economic growth pattern and tries to keep her economy developing at a fast speed. Motivated by the significance of the problem, this dissertation studies the embodied(import trade, foreign direct investment and overseas direct investment) spillover effect of foreign R&D stocks, on the development of technology development and technology innovation in china.Content of this dissertation is as follows:Firstly, this dissertation studies the development of foreign embodied R&D channels including FDI, ODI and import trade since Reform & Opening. This section will help us to understand the evolution trend of the three channels organically.Secondly, to prepare for the empirical analysis in the following parts, this dissertation measures and analyzes the TFPs of China and her different parts by non parametric method which is quite front in research area. The result shows that, the technology development in China is significant since 1985, though Yunnan and few other provinces still quite laggard.On the basis of above research, and based on the methods of Lichtenberg and Van Pottelsberghe and China's related data, this dissertation makes an empirical analysis on the spillover effect differences of the following channels, import trade, FDI and ODI. The empirical data range is from 1985 to 2006 of China. The result shows that:spillover effects of the import channel is most obvious and as time passes by, the effects becomes stronger; spillover effects of FDI is obvious in short range, while the long range effects is not so obvious; although the overall spillover effects of ODI is negative presently, but seen from a long run, ODI is helpful to technology development.Furtherly, this dissertation takes China's different provinces as cross-sectional units, and chooses sample data from 2003—2006 of these provinces as panel data to establish a model trying to find out the dynamic effect of foreign R&D spillovers on technology development and their different effects on areas from East, Middle and West China. Result reveals that foreign R&D spillovers, no matter based on international trade, FDI or ODI, have obviously different effects on different areas of China.Lastly, based on the provincial panel data since the year 1990 to 2006, this dissertation studies the foreign R&D's spillover effect on the innovation capability of the East, Middle and West parts of China creatively. The study reveals that foreign R&D spillover effect through import and FDI has obvious positive effect on innovation capacity in China. The spillover effect through import is most obvious on East China, less obvious on Middle China and least obvious in West China. While spillover effect through ODI and FDI are most obvious on West China, less obvious on Middle China, least obvious on East China. Foreign R&D spillover effect through import and FDI has positive spillover effect on local innovation capacity while R&D spillover effect through ODI only has positive spillover effect on West China, other areas negative.Relying on above contents, the innovative points of this dissertation are:(1) the dissertation extends current analysis by studying foreign R&D spillover channels:import, FDI and ODI in one framework; (2) After analyzing the three cross sectional areas:East China, Middle China and West China each containing sub-cross-section provincial area, the dissertation studies the heterogeneity of foreign R&D spillover effect on classic areas under the circumstance those areas are unequally developed. (3) The dissertation uses dynamic panel data model to reveal the dynamic spillover effect of foreign R&D;(4) The dissertation pioneeringly studies foreign R&D spillover stock's spillover effect on China's innovation capacity and its areal heterogeneity.