Study On The Effect Of Geographical Distances And Technological Distances On High-Tech Industries Technological Spillover Among China's Provinces

From the endogenous growth perspective, one nation has to depend upon its own technology developing capacity to achieve technological advance, which is a static model where all economic entities are treated as isolated islands. In later studies, researchers come to realize the important role of technological spillover from neighboring regions in promoting one country's technological progress. Therefore, they started paying attention to the dynamic model where one nation can absorb technological spillover from its neighbors. Some scholars integrated economics with geography and found that geographical proximity is conducive to share of technology and reduction of trade costs, so it has been viewed as an important factor affecting technological spillover between regions. In addition, other researchers suggested that the technological distance between the home and the host countries also plays a pivotal role in affecting cross-region technological spillover. We define technological distance as a combination of technological gap and absorbing capacity, and thereby it is the premise to technological spillover between economic entities and decides the technological recognition, digestion and utilizations capability of the host country as well. Furthermore, different cooperate alliances, social networking, social system and cultures, among other things, have varying degrees of influence on cross-region technological spillover. For the first time in researches on such subject, we define these factors as social distance.This paper is composed of five sections. Section one is introduction, where we deal with the source and significance of this study, the framework of this paper and the possible innovations. Section two is literature review, where we first broaden the definition of distance that affects cross-region technological spillover as geographical distance, technological distance and social distance; then we survey the domestic and foreign literature on the effects of distance on technological spillover and comment a little. In the light of the limited data of our advanced technology industries, in the empirical study this paper tests the effects of geographical distance and technological distance on technological spillover only at provincial level. Section three states the course and the status quo of China's high-technology industries development, summarizes the problems with China's advanced hi-tech industries and gives the reasons. Section four is the empirical analysis of the effects of geographical distance and technological distance on technological spillover, where we first go over the evolution of the measuring tools of technological progress and raise the subject this paper will explore; then we select the variables, establish the model and conduct econometric tests. Section five is conclusion and proposals, where we arrive at the conclusion on the basis of the outcomes of section four, raise relevent policy suggestions and finally make our foresight on the future studies.