Research On The Mechanism Of R&D Spillover Effect On China's Technology Advancement

Evidences from both theory and realities show that a country is dependent on technology advancement to achieve long-term growth, which requires that the country not only boosts the research and development ability by itself, but also strengthens its absorbency of foreign R&D spillover. Then, it's important for China to make good use of foreign R&D spillover to accelerate its technology advancement.Using the panel data of 30 provinces in China from 2003 to 2007, choosing 24 countries, which have close economic relationship with China, including OECD countries USA, Japan, UK, France, German, Canada, Sweden, Turkey, Austria, Belgium, Czech, Danmark, Finland, Greece, Ireland, Netherlands, Norway, Portugal, Spain, Korea, Hungary, Poland and non-OECD countries Singapore and Russia, this paper, based on Coe & Helpman's R&D spillover model, makes an empirical study on the effect of foreign R&D spillover on China's technology advancement. And then this paper divides 30 provinces into 2 groups according to three key affecting factors, technology, human resources and market development level, and analyzes the effect of different conditions on foreign R&D spillover.The conclusion is as follows. At the beginning, oversea R&D investment, FDI, outflow FDI, import and technology contract have similar acting mechanism on foreign R&D spillover. Secondly, the country's own R & D resources and FDI play the most significant positive role in the effect of foreign R&D spillover on technology advancement. Next come import and oversea R&D investment. Outflow FDI and technology contract make the least contribution. Finally, technology, human resources and market development all exert remarkable affection on foreign R&D spillover, especially human resources. According to the conclusions, three suggestions are put forward for reference.