The Impact Of Embedding Global Value Chain On China’s Manufacturing Technology Innovation

Since the reform and opening up,China has participated in the global value chain to achieve rapid economic growth and industrial upgrading,while there are still "lowend high-end industries" and "high-tech is not high",and face the severe challenge of "two-way squeeze".With the deepening of division of labor in global value chain,is participation in global value chain really beneficial to the improvement of technological innovation capability of Chinese manufacturing industry? What is the impact mechanism of China’s embedding in GVCS on technological innovation? What factors have a positive moderating effect on the relationship between GVC embedding and technological innovation? Answering the above questions is of great theoretical and practical significance for China to realize industrial upgrading and promote highquality economic development in the next stage.The research of this paper follows the research ideas of theoretical analysis,empirical analysis and policy suggestions.As a whole is divided into the following steps: firstly,this paper reviews the existing domestic and foreign research on global value chain and its relationship with technological innovation.Secondly,based on the theory of product division and comparative advantage,theoretical analysis and research hypothesis are proposed.Meanwhile,the status quo of China’s manufacturing industry’s participation in the global value chain and the evolution of technological innovation is analyzed.Thirdly,this paper uses the bidirectional fixed effects model and selects GVC participation and manufacturing industry innovation index,which can distinguish forward and backward as well as complexity,as explanatory variables and explained variables respectively,to analyze the mechanism of GVC embedding on technological innovation.In addition,based on the heterogeneity of the industry,multiple groups of grouping regression and robustness tests were performed.Finally,the conclusions are summarized and corresponding policy suggestions are put forward.The results show that:(1)The backward participation of the global value chain of China’s manufacturing industry is higher than the forward participation,and there is still more backward embedding into the global division of labor system,so China plays a role in "value input" in foreign trade,but in recent years this role is gradually changing to "value output".(2)In the sample study period,the backward participation of China’s manufacturing industry into the global value chain division of labor will have a negative impact on the domestic manufacturing technology innovation,while the forward participation will have a significant positive effect on the technology innovation.(3)According to the difference of industry factor endowment,the stage difference after the financial crisis,and the heterogeneity of industrial policy implementation of manufacturing subsectors,the relationship between GVC and innovation has different impacts from backward or forward participation.(4)This paper examines the moderating effects of technology absorption capacity and producer services input on technological innovation.The regression results show that both producer services input has a positive moderating effect on technological innovation,and technology absorption capacity has a significant positive moderating effect on backward participation.As for forward embedding,due to the lack of technology transformation ability in China,the new knowledge gained in embedding global value chain cannot be effectively utilized and its own unique innovative technology can be formed.In view of this,this paper puts forward some policy suggestions,such as accelerating the development of high-tech industry,perfecting the industrial policy system and improving the domestic technology absorption and conversion capacity.