Study On The Impact Of Technological Progress On The Upgrading Of Global Value Chain In Chinese Manufacturing Industry

With the reduction of transportation costs,the development of multinational corporations and the increasingly open trade policies of governments,the production activities of global value chains have developed rapidly in the past decades.With abundant labor factors,China has actively integrated into the global value chains dominated by developed countries and undertaken the assembly and processing links in the production chain of global value chains,which has enabled China’s economy to grow rapidly.However,engaging in assembly,processing and other links can only obtain a relatively small amount of added value in the whole production chain,while most of the added value is obtained by the developed countries engaged in R&D and design or marketing and after-sales,and has been engaged in low-end assembly and processing work can not achieve long-term economic development.At present,with the change of the world economic and political situation,developed countries gradually implement policies to promote the "return" of manufacturing industry,meanwhile,China’s labor cost advantage is weakening,facing the risk of "diversion" from other developing countries.Therefore,China urgently needs to form a comparative advantage in science and technology through technological progress so as to move to the high-end segment of GVC.Against the above background,this study analyzes the effects of independent innovation and technology introduction on China’s GVC upgrading,and explores the path of GVC upgrading through technological progress.This study establishes a two-country GVC technology competition model and analyzes the impact of technology introduction and independent innovation on GVC upgrading in developing countries through the derivation of the model.The derivation results suggest that if developing countries want to upgrade the production side of GVC through independent innovation,the prerequisite for upgrading the production side of GVC by increasing independent innovation input is to improve their own independent innovation capability,because in order to control the upstream production link of GVC and thus gain high returns,when developing countries increase independent innovation input,developed countries will also increase innovation input,and it is difficult for developing countries to achieve GVC upgrading simply by It is difficult for developing countries to achieve technological catchup simply by increasing the input.In addition,through the model analysis,it is also believed that developing countries can achieve upgrading in GVC through technology introduction.In order to verify the conclusions of the model,this study uses the relevant data of China’s manufacturing industry from 2001 to 2018 to empirically test the findings of the study.The results of the empirical test find that simply strengthening the investment in independent innovation cannot achieve upgrading to the upstream of the GVC production chain,and must rely on the improvement of independent innovation capability to promote the upgrading of the GVC production chain.The empirical results also indicate that technology introduction can promote the upgrading of the GVC production chain.The above results remain robust after replacing core variables,tailoring the data,and excluding the effects of the financial crisis,and there are no obvious endogenous problems.In terms of industry heterogeneity,the group regression results show that,the results of independent innovation inputs and technology introduction inputs in non-technology-intensive industries are consistent with the full-sample regression results.In contrast,in technology-intensive industries,the improvement of independent innovation has no significant effect on the upstream extension of GVC,and technology introduction can lead technology-intensive industries to extend upstream of the GVC production chain.Finally,based on the above analysis,this study makes the following recommendations:(1)China should strengthen the cultivation of innovative talents;(2)attract outstanding overseas national and foreign researchers to participate in scientific research in China;(3)use research funds more efficiently and improve the treatment of researchers;(4)establish a perfect protection mechanism for scientific and technological achievements;and(5)actively seek international technological cooperation.