Research On FDI’s Spillover Effect Of The High-tech Industry Agglomeration

The process, in which the high-tech industry has continued to develop and high-tech zone is constantly driving the city’s economic development, has caused hot discussion about two questions:one is whether the injection of foreign capital can really promote the technological progress of high-tech industries, and whether there is technology spillover in the high similarity industry. The other is whether the agglomeration and spillover effect of the high-tech zone can promote the city economic development, and whether there are differences in the impact of diffent concentration of high-tech zone industrial agglomeration. The empirical test results of the existing industrial agglomeration and FDI technology spillover effects are not unanimous. Considering the reality of the development of the high-tech zone and city, one reason is that there are differences in the study sample, research time, research index and research method, the another key reason is that different technology gap may lead to different spillover effects. On the theorical side, the endogenous growth needs to be further studied based on the open economy system, and how to put the external factors such as FDI, industrial agglomeration into the economic growth model, especially the research on the impact of FDI spillover effects from the perspective of technological gap also needs some deep research. In addition, most of the existing studies focus on the macro or micro level of the enterprise, the knowledge on high-tech industrial agglomeration and FDI technology spillover effect on city economic growth and the development of high-tech industry from the perspective of the city economic growth and technological progress in the medium measure is not sufficient. From the perspective of the technology gap,the study focused on the high-tech industries cluster and the spillover effect of FDI on city economy, and discusses different spillover effect of the high-tech industry agglomeration and FDI in the different agglomeration degree and technology gap, and hope to provide theoretical and practical reference for the technological progress of high-tech industry and the city economic growth.The paper selects the high-tech industry as the research object, based on the technology gap, analyzes the spillover effect of high-tech industrial agglomeration and FDI on urban economic theoretically and empirically. This paper follows the research approach of "theoretical analysis, proposed hypothesis, empirical test, policy suggestion", and focus es on the following five propositions:First, there is a relationship of mutual promotion between the technology spillover effect of enterprises and industry agglomeration; Second, FDI has spillover effect on the domestic enterprise of the high-tech industry; Third, there is obvious spillover effect between high-tech industries; Fourth, the high-tech zone has a strong radiation effect and plays a driving role in the city’s economy developmet; Fifth, industrial agglomeration and FDI technology spillover have nonlinear characteristics on city’s economic development,and exist in threshold of technological gap.In order to test the propositions above. Firstly,the paper analyses through theoretical the causes of industrial agglomeration and the formation mechanism of high-tech industry cluster based on FDI, demonstrates the necessity of high- tech industrial agglomeration, and expounds the mutual promotion relationship between industrial agglomeration and FDI technology spillover, and puts forward the model of the relationship between the industrial agglomeration, technology spillover and regional economic growth based on the threshold of technology gap; Secondly, from the aspects of capital and spillover effects, this paper makes some empirical tests on the spillover effect of foreign enterprises to domestic enterprises, provides evidences for the preceding research of the spillover effect of high-tech industrial agglomeration. Thirdly, it calculates the spillover effect between high-tech industry by means of production function model and the rolling estimation method, and verifies whether there is a difference between the different similarity degree industrial spillover effects. Then, this paper selects the high-tech zone as the object, and put the technology spillover and industrial agglomeration into the same production function, using the fixed effect model to verify industrial agglomeration and technology spillover effect on the high-tech zone. At the same time, the high-tech zone is divided into three levels according to the degree of industrial agglomeration, to investigate the different degree of industrial agglomeration’s influence on the economic growth of a city. Finally, based on the threshold of technology gap, the threshold regression model is used to prove that there are three threshold values that make the industrial agglomeration and the FDI spillover effect nonlinear, and further verify the impact of the two on the high-tech zone city economic growth from the overall sample and four group samples. Based on empirical test above, combined with the status quo of high-tech zone and city development, this paper provides some countermeasures on how to promote the inner-high-tech industry and inter-high -tech technology spillover, high-tech zone construction and city economic development.The conclusions are as follows:First, FDI has the obvious spillover effect to the high-tech insustry, but has little spillover effect on the domestic enterprises. Second, high similarity degree industry is more prone to have technological spillovers. Through the calculation of the similarity degree of 8 high-tech industries, this paper found that only the pharmaceutical manufacturing industry and other 7 high-tech industries’similarity degree is very low (less than 0.01), between the other 7 high-tech industry is very high (average in 0.9), the high similarity degree industries are more prone to have technological spillovers through experimental test of this paper. The analysis results of the rolling estimation show that the technology spillover effects of the 7 high similarity degree industries are gradually declining over time.Third, industrial agglomeration can promote economic growth significantly, and FDI technology spillover has negative effect. Under the controlling condition of the human capital, capital investment, industrial structure, scientific research investment and institutional variables, the industrial agglomeration has passed the significant test on the 10% statistical level, the coefficient is positive, and the economic growth is significantly promoted. The technology spillover has passed the significant test on the 1% statistical level. The technology spillover coefficient is negative from either the whole or different degree of industrial agglomeration, which indicates that the FDI technology spillover have no promotion effect and can even hinder the economic growth of the city. The interaction between industrial agglomeration and FDI technology spillover is not obvious. Fifth, there is a threshold of technology gap among industrial agglomeration and technology spillover and city economic development. Through the threshold regression of 55 cities, it proved that the impact of industrial agglomeration and FDI technology spillover on the economic growth of the city, there are three threshold values based on the technology gap. The Fixed Effect and SYS GMM regression to Whole sample of the 55 cities are all significant. The results show that when the technology gap is too large or too small, the effect of FDI technology spillover and industrial agglomeration is not obvious. Only in the medium technology level cities (2.1504 GAP 4.6202), industrial agglomeration and FDI technology spillover passed a significant test.Innovations of the paper:First, this paper puts forward two important corolarys based on the external economic theory and new growth theory:the one is FDI have a spillover effect on intra-high-tech industry and inter-high-tech insustries; the second is the high-tech industry culuster, FDI technology spillover to the city economic growth has nonlinear characteristics, exist in the technical gap threshold. On the basis of the two corollarys puts forward the model of the relationship between the industrial agglomeration, technology spillover and regional economic growth based on the threshold of technology gap; Second, from the high-tech industry level empirically verifies the spillover effect of FDI on intra-high-tech industry and inter-hing-tech industries, and provides real support for the high-tech industry cluster; Third,make the 55 high-tech zones as the research perspective, this paper empirically analyses the influence of the high-tech industry cluster and FDI on the city economy growth,make up the blank of the meso-level research about the technology spillovers and industry agglomeration; Fourth, based on technology gap threshold verifies the high-tech industry cluster,FDI technology spillover and city economic development have nonlinear relationship, proved there are three technical gap thresholds, and agglomeration and spillover effects to achieve the best in the secondary technical level of the city state,and provides some empirical reference for city economic growth and high-tech zones development.