Study On Space Effects Of Technological Spillover In Interregional Industrial Transfer

Industrial transfer is primarily a kind of economic phenomenon, which isrealized through industrial transfer and undertaking in terms of subjective behaviors.It is also a dynamic process of industrial agglomeration and diffusion in terms ofspatial distribution. Interregional industrial transfer is that fact that in market economy,some industries in developed regions shift part of their production to some developingregions to conform to the changes in competitive advantages through directinvestment across the regions so that the industries take on spacial movement. Fordeveloped regions, industry transfer can not only prolong the receding industry’scomparative advantages, but also provide development space for innovation ofemerging industries in the regions. However, in less developed regions, industrialtransfer can not only compensate for the lack of funding, but also bring technologicalspillover effects to them, improving the overall level of the regional economicdevelopment. In China, it is normal in recent year for southeastern coastal areas toundertake foreign industrial transfer so that the economic development level andtechnical level in those eastern provinces have been greatly enhanced and become theeconomic engine of the whole country. However, the western regions, due to thegeographical factors and the restrictions of economic development level, are notfavored by international industrial transfer. This further widens the economic gapbetween the east and the west in the country. In response to this situation, the nationdirects the eastern industries to transfer to the west from the macro perspective, and atthe same time the western provinces are actively undertaking the technologicaltransfer from the east to improve their technical level by taking the advantage ofsecond-mover advantages to continuously improve their technical level and reduceeconomic development gap between eastern and western regions. Domestic industrialtransfer has gradually taken its shape, which provides an opportunity for economicdevelopment in western China. In this context, there is no doubt that its influence onthe technical progress of the western regions is of great practical significance.Meanwhile, because of the spatial correlation between regions, the technologydevelopment level of one province may influence those of other provinces. This paper focuses on exploring the impact of industrial transfer on technological spillover inwestern regions with the aim of providing guidance for western provinces to betterdevelop their economy through reasonable use of technology spillover.This paper first constructs the theory for space effects of technological spillover ininterregional industrial transfer from related theories such as industrial transfer,technological spillover and space effect. Then, starting from analysis on technologicalspillover mechanism in industrial transfer, it clarifies the dynamic process of thespread of technological spillover from inside the region to the outside from theperspectives of inter-industrial, intra-industrial and interregional technologicaltransfer. In addition，the status quo of industrial transfer in western areas are discussedfrom perspectives such as the conditions of undertaking industrial transfer in westernareas, the investment scale and features, spacial distribution characteristics and so on.Based on the above analysis, this paper then performs an empirical analysis on spaceeffect of technological spillover in industrial transfer undertaken by western areasthrough spatial exploratory data analysis and spatial econometric analysis. To enhancethe rationality of introducing space factors in the paper, empirical research is done onspace effect of technological spillover in interregional industrial transfer usingclassical measurement and spatial econometric analysis methods. The results showthat the spatial econometric model is very effective in analysing the space effect oftechnological spillover in interregional industrial transfer. The spatial associationeffects exist between adjacent provinces and interregional industrial transfer haspositive spatial spillover effects on technology progress in western areas. It is alsofound that industrial transfer, foreign direct investment and innovation strength havepositive correlation to the technology progress in western regions while human capitaland technological progress are significantly negatively correlated. In the end, somesuggestions are given on how to effectively strengthen technological spillover effectin interregional industrial transfer.