The Technology Diffusion Effect Of International Intellectual Returnees

Comprehensively along with the knowledge economy, the person with the high quality becomes the resources of strategic importance to the economic development and international competition in the21st century for every country. In some way, whether a country can develop persistently and fleetly depends on whether the country have plenty of high-tech talents as well as whether these talents are properly developed, made use of, deployed and managed. Human capital, especially the high-quality human capital as an essential element of economic development for a country, is becoming a valuable resource for competing countries. World Migration Report shows that there are around210million people working outside their countries of birth on Earth as of2010, where1in every35people is immigrant, and six people are from developing countries and regions among every10highly educated migrants. Adds in the global scope talented person's shortage, developed countries attract a lot of talented people from developing nations. This has become the "bottle-neck" that restricts the development of our country's economy and society.From the80s and90s of twentieth Century, the phenomenon of global overseas backflow began to appear in great quantities. Such as one of the East Asian tigers Korea in nineteen eighties, the brain drainers went back to the motherland in succession, especially after90time, the returning rate reached60%, and the returned talents played a vanguard role in innovation-oriented national construction of Korea. We called people who have the experience of studying or working abroad in China returnees. According to the China Scholarship Council statistics, the total number of returnees in China has reached632200since "the cub" originated from Qing Dynasty to the year of2010, they have made great contributions to the development of China's health, science and education.As the main part of international intellectual return, returnees are important forces for their home countries'technological progress. With the assumption of workers'heterogeneous talents, this paper analyses the effects of returnees on technology innovation by introducing the brain backflow into the innovation function within the framework of an open economy. Furthermore, by constructing the indicator of brain backflow and introducing returnees into the international R&D spillovers econometric model, we test the technological progress effects of returnees in various regions of China by using Chinese provincial panel data. The results show that returnees have played an important role in technological progress in various regions of China, but there are differences in the degree of contribution, and the conclusion remains robust after the use of multiple tools to solve problems of endogenous variables. On this basis, we set a threshold model to measure the threshold level of local fiscal revenue, economic development, scientific research level, human capital and financial market efficiency which can cause positive spillover effects of returnees. Finally, according to empirical results, we propose policy recommendations to attract talents backflow.