Study On Foreign And Domestic Technological Spillovers And Human Capital Threshold

With competition of science and technology becoming more and more serious, technological progress has become the breakthrough in achieving economic stride and even outride. However, due to China's weakness of technology and the lack of funds and talents, it is not rational to depend on its own efforts to develop technology. In other words, exerting the technological spillover effect of foreign investment is the more effective way to achieve technological progress and innovation in host regions. Since the implementation of China's"using market to trade technology"strategy, it has introduced in greats of foreign investments. And with the expanding of foreign investment, it has made great contribution to economic growth, employment, and international trade. But the introduction of foreign investment does not mean the host must be able to grasp the advanced technology that included in the capital, all the introduction, digestion and absorption of foreign capital and promotion the second innovation are subject to lots of factors, among which human capital plays a crucial role.This paper firstly reviews the theoretical and empirical studies on technological spillover effect and absorptive capacity both at home and abroad. Then, it analyzes the actuality of China's introduction of foreign investment and its human capital accumulation. After introducing the panel threshold model and its practicability, according to the threshold effect technique based on non-dynamic panel data provided by Hansen,studies the non-linear relationship between technological spillover,from both foreign capital and internal trade,and technological innovation. Results show that wherever technological spillover is from, there exists evident threshold of human capital, which spilt the sample into two regimes. Beyond the threshold, high-level human capital is more effective in absorbing foreign technological spillover. It also shows that most provinces have not yet exceeded the threshold of high-level human capital in absorbing foreign technological spillover effectively. At the end of the paper, in view of human capital accumulation, it puts forward some proposes on how to get full use of technological spillover effect to promote technological innovation in host regions.