The Impact Of International Intellect Return On China’s Industrial Upgrading

Along with the economic developing, individual income increasing, environment of innovation and starting a business improving, policies and systems perfecting in China, more and more oversea talents flow back, which brings China abundant human capital. On the other hand, in China, professional and innovative talents is relatively few, industrial restructuring and upgrading suffers the high-quantity human capital bottleneck. Under these backgrounds, the research of the impact of international intellect return on China’s industry upgrading is significant in theory and practice.Firstly, this paper mainly combs the relevant literatures on international intellect return and industrial upgrading,analyzing current research progress and find this paper’s research perspective. Simultaneously, it generalizes the current situation of international intellect return, industrial upgrading and the impact of international intellect return on industrial upgrading. Then, this paper summarizes the specific impact mechanisms of international intellect return promoting industrial upgrading, and put forward the research hypothesis based on the human capital and starting an business perspective. Secondly, this paper tests the direct impact of international intellect returnon China’s industrial upgrading based ontime series from 1995 to 2014 with the Co-integration test and Granger causality test methods, and further tests the direct impact of international intellect return on industrial upgrading and the difference of this kind effect in east and middle and west region, and also the indirect impact of international intellect return on industrial upgrading through the human capital investment incentive effect based on the dynamic panel data from 2000 to 2011 with the Generalized Method of Moments. Thirdly, this paper studies the general mechanism of intellect return influence industrial upgrading in reality by starting a business with the example of Shen Nanpeng founded Ctrip. At last, this paper gives the conclusions and suggestions.This paper finally draws four conclusions. First, the international intellect return has significant impact on promoting both the industrial structure upgrading and intra industrial upgrading of China and this kind of impact on intra industry upgrading appears to lag in a certain period. Second, the impact of international intellect return on industrial upgrading is different in region, it is significant and positive in east region, but insignificant on industrial structure upgrading and negative on intra industrial upgrading in middle and west region. Third, the human capital investment incentive effect of the international intellect return has negative impact on industrial upgrading, and along with the increasing of domestic human capital investment level, the promoting effect of international intellect return on industrial upgrading is weaker. Fourth,by starting a business, the returnees will promote the transformation and upgrading of a certain industry and promote industrial structure upgrading through promoting the development of similar and related enterprises. Based on the above conclusions, the paper puts forward three Suggestions. First, it is necessary for China to continually introduce overseas talents especially those with the innovation and entrepreneurship spirits. Second, encourage and support the returnees with entrepreneurial spirit to start a business and promote the business started by returnees to agglomerate, shape the industry agglomeration soas to maximize returnees’ impact. Thirdly, it needs to insist on talent open policy, encourage domestic people to learn and work in those developed country, to gain overseas experience, to lay the foundation for the international intellect return.