Research On The Impact Of International Vertical Specialization Organization Mode Selection On Technological Innovation

In today's trade liberalization and investment globalization,international vertical specialization is the main way for enterprises to conduct cross-border trade.Chinese enterprises have also actively participated in the international vertical specialization through processing trade and general trade.In 2018,China became the world's largest country in goods trade and the second largest in service trade.With the introduction of the concepts of German Industry 4.0 and the return of manufacturing in the United States,the volume of world trade has decreased significantly,and the development of international vertical specialization has slowed down.The processing trade,which is dominated by low labor costs and loose resource and environmental constraints,has become unsustainable,and Chinese enterprises are in urgent need of transformation and upgrading.Technological innovation is one of the effective ways for enterprises to reduce processing trade,increase high value-added production activities,and ultimately achieve global value chain upgrades.Therefore,in the context of the Made in China 2025,study how Chinese companies achieve technological innovation when undertaking production links,and how the government encourages companies to engage in innovative activities to achieve the rise of enterprises towards both ends of the global value chain,and China's transformation from a major manufacturing country to manufacturing.The transformation of a powerful country has theoretical and practical significance.Based on the perspective of the undertaking country,this paper uses the World Bank's 2005 survey of Chinese companies to conduct an empirical test of the impact of different international vertical specialization organizational models(vertical integration or undertaking offshore outsourcing)on Chinese companies' technological innovation behavior.According to the city where the enterprise is located,the total sample is divided into the central and western regions and the eastern region.According to the industry in which the enterprise is located,the total sample is divided into capital-intensive and non-capital-intensive industries,and the impact of the selection of the international vertical professional organization model on technological innovation is tested in turn.Whether there are significant regional differences and industry differences.Finally,the propensity score matching method is used to weaken the endogeneity problem,and the robustness test is carried out on the research conclusions.This article also uses a typical interview to take Luxshare as an example to conduct a case study on the impact of our country's OEM enterprises' outsourcing on technological innovation.Analyze the transformation process of Luxshare from commissioned manufacturing to R&D,design and manufacturing,elaborate its upgrade path and summarize the research findings in the case analysis process,which will bring inspiration to other OEM companies to realize the transformation and upgrading of the global value chain.Empirical test of the impact of different international vertical specialization organizational models(vertical integration or undertaking offshore outsourcing)on Chinese companies' technological innovation behavior.The results show that,compared with vertical integration,participation in the international vertical specialization of the offshore outsourcing organization model promotes the technological innovation of Chinese enterprises,which not only enhances the enterprise's R&D tendency,but also increases the enterprise's R&D investment.Analyzed from the regional level,relative to vertical integration,participating in international vertical professions in the eastern and central and western regions by adopting an offshore outsourcing organization model has a promoting effect on enterprise technological innovation,and its promoting effect is more obvious in the eastern region.Analyzed from the industry level,compared with vertical integration,participating in the international vertical profession in the capital-intensive and non-capital-intensive industries in the offshore offshore outsourcing organization model can promote the technological innovation of enterprises,and its promotion effect is greater in capital-intensive industries.This article also takes Luxshare as an example for case analysis.The results show that Luxshare's precise upgrade path is: First,to upgrade the process through acquisition of production lines and improvement of technology.Second,upgrade products by increasing related product types and improving product quality.Then,through the vertical extension of the industrial chain to achieve functional upgrades.Finally,cross-industry upgrades are achieved by setting foot in industries where other connectors are widely used.In light of the above research conclusions,the policy recommendations proposed in this article are: First,increase opening to the outside world and actively introduce foreign capital.Second,improve the bank loan approval system and increase government support for research and development subsidies.Third,establish a research and development center,innovate the model of government,industry,academia and research,and create a joint research and development-patent application and application-market supply and demand feedback system.Fourth,optimize the intellectual property system and create an institutional environment conducive to innovation.