Research Of Technology Spillover Effects From Foreign R&D On Innovation Capability Of Local Enterprise

Foreign enterprises play an important role in China’s high-tech industry. These years,one-third of the total R&D investment and R&D personnel of the high-tech industry isfrom foreign enterprises. Compared with foreign enterprises, the local high-tech enterprisesinvest more in R&D, but innovation output is relatively less, which reflects the innovationcapability of local high-tech enterprises is relatively weak. Therefore, in order to enhancethe competitiveness of local high-tech enterprises, studying how to improve the innovationcapability of local enterprises is an important research topic.Studies have shown that, since R&D has the characteristics of public goods, foreignR&D activities would promote the advancement of local enterprises technologicalinnovation capability through the technology spillover. However, empirical researches onforeign R&D spillovers and local enterprises technological innovation have resulted todifferent conclusions, i.e. promoting theory, suppressing theory and the double-edgedsword theory. Besides the different research objects and methods, the main reason is thatindustry characteristics and other factors will have an effect on technology spillovers.Therefore, when studying the impact of technology spillover effects from foreign R&D onthe innovation capability of local enterprises, industry characteristics should be taken intoconsideration. Otherwise, it will lead to biased results.Studying on the influence mechanism of the technology spillover on innovationcapability, this paper established a research framework including the hypothesis of theinfluence on technology spillover from industry characteristics factors. Secondly, based onthe Griliches-Jaffe Knowledge Production Function Model, we established an empiricalmodel including demonstration-imitation effect, workers mobility effect, and competitioneffect of technology spillover. Using the dynamic panel data model and the data about13sub-sectors in high-tech industry of China from1995to2011we study the influence oftechnology spillover from foreign R&D on local enterprises innovation capability. At thesame time, the grouping method and interaction term method are used to research theimpact of industry characteristics on technology spillover. The research results show as follows Firstly, a higher competition degree of theindustry is not conducive to technology spillover effect. Secondly, a higher degree ofdependence on exports of local enterprises is more conducive to technology spillover effect.Thirdly, as the technology gap between local enterprises and foreign enterprises is large,the demonstration-imitation effect is not obvious, but workers mobility spillover effect issignificant. While the technology gap is small, a negative demonstration-imitation effecthas a negative impact on local enterprises innovation capability. However, the impact oftechnology gap on the competition effect is not significant. Fourthly, on the whole,absorptive capacity of local enterprises had a promoting effect on technology spillovers.Whether technology spillover from foreign R&D exists or not mainly depends on theabsorptive capabilities of local enterprises. Finally, based on the above conclusions, thispaper puts forward recommendations on strengthening the technology spillover effect, andenhancing the technological innovation capability of the local high-tech enterprises inChina.