| In the current global value chain,the multinational companies of developed countries and the international big buyers have control the system,using "first mover advantage" with "low-end locking" or "vertical squeeze" to developing countries.Exteriorization development pattern of "two head outside" inhibit the development of China’s service industry,the lag situation of service industry development further compresses the upgrading space in manufacturing industry.The chain host can enhance "technical barriers" or "industry standard" to block China’s industrial upgrading paths,diluting the R&D subsidy and R&D earnings in enterprises.Under background of advocating rebalance of global economy and increasing intensity of environmental protection,external demands shrink and "technical barriers" enhance constantly,so that it will further increase the difficulty for China’s innovation.How to find an effective upgrade path in help manufacturing industry to achieve climbing the two ends of value chain is absolutely an important practical significance.Service sector has been known as localization and non-trade industry.However,the rapid development of world trade in services fully illustrates that service industry has a strong tendency of globalization under the information technology support rather than localization characteristic.Until 2009,trade in service has amounted to 27%of global trade.As the fiurther improvement of service level in world economy,the number will further increase.China’s imports of services trade rises from $2.024 billion in 1982 to $2.024 billion in 2011,increased by 117.38 times,the growth rate is far more than the world average level.Tradable service products are always technology-intensive and knowledge-intensive products,trade in service present more technological and intellectual,so that trade in services should have a stronger knowledge spillover effect Trade in services is driven by both final demand and demand between,73%of products in service trade are as intermediate inputs into the production process.Therefore,imports of trade in service would have a strong effect in promoting the progress of the manufacturing technology.Existing researches ignore the effect of service import on the technological progress of China,s manufacturing industry,upgrade of industrial structure and the role of enhancing innovative ability.In view of this,this paper aimed at the problems in comprehensive,detailed and in-depth researchFirstly,we explore the reason of large-scale emergence on service trade.Since the Uruguay round signed general agreement on trade in services(GATS),global service trade barriers have obviously decline.The paper indicates that acceleration of globalization is the important cause of the rapid development of service trade Globalization affects trade in services through two channels,direct one and indirect one.The first direct mechanism demonstrates that globalization leads to lower trade barriers and a decline in transaction costs through Global Sourcing and Outsourcing,in stimulating bilateral trade in services.The indirect mechanism is that globalization can strengthen the impact of economic stability on promoting trade in service,national economic stability will have more effective protection of trade in services.Secondly,this paper analyzes the general rule between service imports and technological progress by international data.We estimate the intensity of R&D spillover through trade in services based on bilateral trade in services in forty-seven countries around the world.The empirical findings indicate that technology spillover effect of service import can significantly improve domestic TFP,the promoting effect is mainly reflected in the improvement of technical efficiency.That means service imports can expand the diversity of intermediate service product and improve the quality of service,then raise the technical efficiency.In addition,research on different sample shows that the spillover effects of service trade between developed countries mainly on increasing the rate of technological progress,while in North-south trade,technology spillover effects are not significant neither on technological progress nor technical efficiency.Then,we choose two typical late-developing countries as the research object,China and India,analyze if service import can help late-development countries realize the technological catch-up with advanced countries.The empirical results demonstrate that the effects of service import on technological catch-up have obvious heterogeneity between China and India,which is due to the difference of development modes and service import structure.Through imports of service,China,s manufacturing industry can not only increase the variety and quality of intermediate inputs but also improve the downstream manufacturing industry’s productivity.In addition,it can absorb foreign advanced technology and knowledge and effectively realize technology catch-up with developed countries.As there are vicious competitions,service imports cannot help India to achieve technology catch-up with developed countries.Thirdly,this paper utilizes two input-output tables in 2002 and 2007 which combined with service trade data in UNCTAD database,then estimates the amount of imported service that used into production of manufacturing industry based on the FH index and the DJ index.In addition,we have an in-depth study in the mechanism how service imports influence innovation capability of China’s manufacturing.Empirical studies indicate that service import can solve the manufacturing innovation capacity shortage problem which due to the lag-behind situation of China’s service sector.Furthermore,it will also enhance manufacturing TFP effectively and help China in achieving the task of climbing global manufacturing value chain.Subsequently,the paper studies the impact of service imports on manufacturing employment markets,the results demonstrate that service imports can reduce the cost of production in manufacturing sector while improving workers’ wages.It means that the first deviation effect of service import exists.On the other hand,the analysis of the employment rates show that imports in service will inhibit the amount of overall employment,but increase the demand for skilled workers,which prove the second deviation effect.Therefore,service imports can promote the accumulation of human capital.Finally,we select the kind of trade in services with highest technical content,patents and royalties,and match it with China’s input-output.After that we estimate China,s R&D outsourcing rate in manufacturing industry from 2003-2011 and analyze the relationship between R&D outsourcing and China’s innovation capacity empirically.In addition,this paper use Hansen’s threshold testing methods to make a further examination and choose absorptive capacity and bargaining power to be the threshold variables.The main empirical findings indicate that R&D outsourcing can improve the overall innovation capability by increasing technological progress rate of China,s manufacturing R&D sector.But this promoting effect must be met under certain conditions,only if the absorptive capacity and R&D capability exceed a certain threshold value,R&D outsourcing will promote innovation capacity in manufacturing sector. |