Study On The Impact On The Technology Spillover Of The Industrial Agglomeration

Industrial agglomeration is the major competitive forces of economic globalization and regionalization, specialization and the role of regional economic dependence between the production factors promote the formation of industrial agglomeration New geographical economics, cluster theory and endogenous growth theory generally considered that industrial agglomeration can reduce transaction costs and enhance competitiveness of enterprises, share elements of infrastructure and resources, access to knowledge and technology spillovers and extend downstream interrelated chain, thereby increase productivity and promote economic growth. Although the technology spillover effect of industrial agglomeration in theory get a valid argument, but in terms of empirical testing, scholars have different results. There exists divergence as to empirical results about whether the industrial agglomeration can promote the technology spillover. Basing on the Chinese provincial data from1988to2011, this paper analyses the technology spillover effect of industrial agglomeration from the perspective of human capital through verifying the threshold effect of spatial agglomeration on the total factor productivity growth under different human capital conditions by using threshold nonlinear estimation.Content of this paper is divided into five parts. First, this article summarized the preliminary studies of the technology spillover of the industrial agglomeration and the differences between industrial clustering technology spillover effect theory and empirical research, in order to put forward the hypothesis of this paper and provide a theoretical background. Second, the paper assumed the role in promoting industrial agglomeration of technology relies on the accumulation of human capital accumulation. This article explored human capital for industrial clustering technology spillover mechanism from human capital factors of production, research and entrepreneurial elements. Third, the paper selected Chinese calendar provincial data to estimate regional industrial agglomeration, human capital and technology spillover level. We used panel random effects, fixed effects model and the instrumental variable model to analyze the linear relationship between industrial agglomeration and technology spillover level. Fourth, this paper analyzed the technology spillover effect of industrial agglomeration from the perspective of human capital through verifying the threshold effect of spatial agglomeration on the total factor productivity growth under different human capital conditions by using threshold nonlinear estimation. Fifth, the paper selected the non-parametric DEA method to decompose the level of technology spillover into various regions of technological progress and efficiency improvements, and tested the way of industrial agglomeration technology spillover effects under the different levels of human capital.The main conclusion of this paper is divided into three parts. First, there is a threshold effect of the impact of spatial concentration of manufacturing technology level. The empirical results show that, the industrial concentration has no effect on total factor productivity growth at a low level of human capital. Once exceeding the "threshold value" of human capital, the industrial concentration will significantly promote the total factor productivity, and with the further increase of human capital, the effect is particularly obvious. Second, this paper indicates that, the industrial agglomeration promotes the total factor productivity growth mainly by promoting technological progress rather than technical efficiency. Third, China’s overall level of human capital has improved steadily but unevenly. According to the threshold model of endogenous human capital results, human capital of the east and west there are obvious gaps, shortage of human capital limits the technology spillover effect of industrial agglomeration, This will lead to further expansion of the gap between eastern and productivity levels.