The Non-linear Effects Of Inter-region Industry Transfer On The Innovation Capability In The Chinese Western Province

Interregional industrial transfer refers to the economic behavior of developed regions in order to adapt to the trend of economic development and transfer some industries to less developed regions through cross-regional direct investment in the ever-changing conditions of production factors,resource supply and product demand.From the main point of view,industrial transfer is the dynamic game process between the transferor and the undertaking party,the enterprise and the government.From the perspective of spatial distribution,it is the spatial movement or migration of industries.For our country,with the implementation of the strategy for the great development of the western region,the wave of domestic industrial relocation has gradually emerged,at the same time,it has brought opportunities for the economic development in the western region.In fact,the western region is not only rely on the realization of economic take-off to undertake the transfer of industries in developed regions,but with the help of the western development policy and industrial transfer to undertake developed areas of opportunity,full learning,absorption and use of interregional industry transfer in the process of technology spillover effect,improve the local technical innovation ability,so as to accelerate economic.Based on the review of related literatures,this paper first analyzes the mechanism of interregional industrial transfer and technological innovation,and then makes a statistical description of the status quo of industrial transfer and technological innovation in the western region,finally it uses chinese western 11 provinces' panel data from the year 2000 to 2015 to test the non-linear dynamic influence effect of domestic inter-industry transfer on technological innovation ability.This empirical analysis uses four absorptive factors as threshold variables including the level of urbanization,human capital,economic openness and technology gap to construct a panel smooth transition regression model.The empirical result shows that the elasticity coefficient of inter-region industry transfer to the innovation capability in host region has been significantly influenced by the level of urbanization,human capital,economic openness and technology gap and there exists threshold effect and smooth transition mechanism effect.When the value of this four variables are greater than threshold,PSTR is close to be in high period and the inter-region industry transfer can significantly improve the innovation capability of the western host region in China.