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Foreign R&D Spillover and China’s Innovation Capability: A Panel Data Model Analysis

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Proceedings of 20th International Conference on Industrial Engineering and Engineering Management
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Abstract

This paper through a statistic method to explore the spillover effects of foreign R&D on innovation capability in China based on provincial panel data from 1990 to 2010. We find positive spillover effects of foreign R&D through trade channel and FDI on the number of domestic patent applications in China, and spillover effects through trade channel is more significant; in addition, the spillover of ODI has negative effect, though not remarkable. Further analysis shows that international trade spillover play an important role to promote innovative ability in the eastern and middle areas, and FDI has more obvious effect on the western region, while ODI only have a positive spillover effects on the western areas. Based on the empirical results, this paper proposes some related suggestions to promote China’s innovation capacity.

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Acknowledgment

We thank Guo for his offering detailed data to us, and we also thank SHANG for his recommendation to this paper.

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Correspondence to Yang Xu .

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Xu, Y., Hu, Jc. (2013). Foreign R&D Spillover and China’s Innovation Capability: A Panel Data Model Analysis. In: Qi, E., Shen, J., Dou, R. (eds) Proceedings of 20th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40063-6_55

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