Research On The Influence Of Technological Innovation On Industry Vertical Specialization

With the development of economic globalization, the international division mode characterized by vertical specialization was born and increasingly deepened, vertical specialization or technology spillovers has an important impact on the host country’s technological innovation, promotes the evolution of the industrial structure. The existing literature builds a lot of research on vertical specialization or technology overflow accompanied by it with Chinese enterprises’ capability of independent innovation, and part of the research have got a positive conclusion, but they pay little attention to another problem that whether the technology spillover will promote the formation of comparative advantage in innovation capability, thereby promoting the further vertical specialization of the industry chain.To solve the above problem, this paper research the influence of technological innovation on industry vertical specialization from the perspective of technology spillovers, use the input-output tables of 1997,2002,2007 to measure the level of vertical specialization of China’s 22 industrial sectors, and establish a panel data empirical model verify the hypotheses of this article. The results as follow:First, technological innovation and technology spillover have a positive role in promoting the industry vertical specialization respectively. The stronger of the technological innovation capability or technology spillover effect of Chinese industry, their participation in the global vertical specialization degree is deeper.Second, technological innovation and technology spillovers in the promotion of industry vertical specialization are complementary. When the ability of technological innovation is increase, the vertical specialization will be further enhanced with the increase of technology spillovers; when technology spillover is increase, the vertical specialization will be further enhanced with the improvement of the technological innovation capability.Third, the larger of the enterprise scale, its participation in the vertical specialization degree is deeper.The larger the enterprise, the more ability and power to carry out research activities, the outsourcing activities will be increased, the higher the degree of vertical specialization.Fourth, the existence of industry difference that the effect of technological innovation or technology spillovers on vertical specialization. The technological innovation or technology spillover in technology- or capital-intensive industries has more influence on vertical specialization than that in the labor-intensive industries. It is related to China’s economic development model, technology-intensive industries and capital-intensive industries have a relatively high dependence on foreign.Through the above analysis, this article certain that technological innovation or technology spillovers promotes the degree of vertical specialization, while we reveal the existence of industry difference that the effect of technological innovation or technology spillovers on vertical specialization. The results have a good reference for China’s industrial sector to improve the capability of independent innovation, then participate in the global vertical specialization and benefit from technology spillovers.