The knowledge spillover effects of FDI on the productivity and efficiency of research activities in China
China Economic Review, 2017, vol. 42, issue C, 1-14
As China is moving toward an innovation-driven economy, this paper offers new insights for both policymakers and investors to optimize the effectiveness of investment performance. This paper studies China's provincial research activities with a focus on the spillover-induced productivity and efficiency change. The results show that spillovers as a result of inflow of foreign investment contribute positively to the performance of overall research activities, however, the productivity effects vary across regions. Our analysis also indicates that highly skewed distribution of FDI leads to a less improved innovation efficiency in FDI-rich provinces. Future innovation policy should adjust the investment profiles based on the preferential innovation output on one hand, and optimize the complementary policy for FDI on the other hand to reduce inefficiency and the potential negative effects of knowledge spillovers. Inter-provincial governmental cooperation is necessary to resolve the uneven distribution of FDI and improve the innovation efficiency in both FDI-poor and rich regions.
Keywords: Patent application; Spillover; Productivity; Efficiency; Poisson model; DEA (search for similar items in EconPapers)
JEL-codes: C2 D2 F19 F29 O3 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:chieco:v:42:y:2017:i:c:p:1-14
Access Statistics for this article
China Economic Review is currently edited by B.M. Fleisher, K. X. D. Huang, M.E. Lovely, Y. Wen, X. Zhang and X. Zhu
More articles in China Economic Review from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().