The Effect Analysis Of International Trade On Efficiency Of Technological Innovation

Technology progress is always a sustainable source of stable economic growth. For a long time, international trade is considered to be an important channel of technology diffusion and transfer. A large number of theoretical and empirical studies have shown that export and import trade can have a profound impact on a country’s productivity. However, most of the literature focus on exogenous technology spillover effects, but little pay attention to the effect of international trade on endogenous technological progress. The purpose of this research is to explore how international trade affects technological innovation of the industry, which resulted in endogenous technological progress.Endogenous technological progress is refers to that the enterprise changes its technological innovation decision which resulted in change of productivity. Through the review of the related literature, and based on the former theory, this paper discussed the possible mechanism that how import and export as well as intra industry trade intensity influence industry’s technology innovation strategy. After the calculating of some related technical indicators, and using the panel data of our country’s manufacturing industry (according to the classification of ISIC3) from 2003 to 2014, this paper analyzed the influence of international trade on the industry technological innovation output, input and efficiency.The main conclusion and contribution of this paper:First, this paper explored the transmission mechanism of impact of trade on technological innovation activities. Based on the present theory about international trade and technological progress, this paper discussed the possible mechanism that how trade affect technology innovation decision and the efficiency from the import, export and the intra industry trade respectively.Second, using the data envelopment analysis (DEA) and CCR model, this paper estimates the efficiency of innovation activities of China’s 29 manufacturing industry. And through the factor analysis, we also estimate the index of technology innovation input and output of China’s manufacturing industry. In addition, with the help of G-L method, this paper calculates the intra industry trade index of China’s manufacturing industry, and analyzes the current trade situation.Third, applying the panel data of China’s 29 manufacturing industry to the empirical analysis, we found that the export trade has a significant positive effect on the technological innovation input, output and efficiency; And, import trade has also a positive effect on technology innovation efficiency and output of high and medium technological industry. In addition, intra industry trade can motivate the industry to increase investment in technology innovation and increase output.Based on the conclusion of the above analysis, this paper puts forward the corresponding policy recommendations:Upgrade the technology through export, encourage the intra-industry trade to enhance the technology communication, adjust the structure of import and export in order to fully absorb the imported technology spillover, reduce the trade protection to promote market competition appropriately, promote the combination of production and research and push forward reform of state-owned enterprise.