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

In: Proceedings of 20th International Conference on Industrial Engineering and Engineering Management

Author

Listed:
  • Yang Xu

    (Hubei University of Science and Technology)

  • Jun-chao Hu

    (Hubei University of Science and Technology)

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.

Suggested Citation

  • Yang Xu & Jun-chao Hu, 2013. "Foreign R&D Spillover and China’s Innovation Capability: A Panel Data Model Analysis," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), Proceedings of 20th International Conference on Industrial Engineering and Engineering Management, edition 127, pages 555-563, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-40063-6_55
    DOI: 10.1007/978-3-642-40063-6_55
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