Foreign R&D Spillover and China’s Innovation Capability: A Panel Data Model Analysis

Yang Xu () and Jun-chao Hu
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Yang Xu: Hubei University of Science and Technology
Jun-chao Hu: Hubei University of Science and Technology

A chapter in Proceedings of 20th International Conference on Industrial Engineering and Engineering Management, 2013, pp 555-563 from Springer

Abstract: Abstract This paper through a statistic method to explore the spillover effects of foreign R&D on innovation capability in China based on provincial panel data from 1990 to 2010. We find positive spillover effects of foreign R&D through trade channel and FDI on the number of domestic patent applications in China, and spillover effects through trade channel is more significant; in addition, the spillover of ODI has negative effect, though not remarkable. Further analysis shows that international trade spillover play an important role to promote innovative ability in the eastern and middle areas, and FDI has more obvious effect on the western region, while ODI only have a positive spillover effects on the western areas. Based on the empirical results, this paper proposes some related suggestions to promote China’s innovation capacity.

Keywords: Innovation capacity; Panel data; R&D spillover (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-40063-6_55

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DOI: 10.1007/978-3-642-40063-6_55

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