Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries

This paper empirically investigates the impact of different channels for international technology spillover on the innovation performance of Chinese high-tech industries, using panel data analysis. We report that learning-by-exporting (and importing) promotes innovation in Chinese indigenous firms. Foreign R&D activities by multinational enterprises in a host country significantly affect the innovation performance of domestic firms only when absorptive ability is taken into account. The findings indicate that both international technology spillover sources and indigenous efforts jointly determine the innovation performance of Chinese high-tech sectors. (c) 2007 Elsevier B.V. All rights reserved.