Empirical analysis of the impact of technology import on industrial innovation in China: a technology expenditure perspective
Abstract
Promoting steady industrial innovation through technology import is an important initiative to accelerate innovation-driven and high-quality economic development in China. In this study, a model of the impact of technology import on industrial innovation is constructed from the perspective of technology expenditure, and empirical analysis is made by employing panel data from 2011 to 2019 in China. There exists obvious regional and industrial differences in the level of technological innovation and the intensity of technology import in China. The econometric results indicate that technology import and industrial innovation are complementary generally, but in the eastern region, as well as the labor- and the technology-intensive industries appear to be substitute. There are obvious regional differences when considering the impact of the interaction items, and the acceleration of technology digestion and absorption is conducive to the improvement of innovation, while that on various industries fail the significant test except for the technology-intensive industry.
Keyword : technology import, innovation, technology expenditure, heterogeneity, panel data model, China
How to Cite
Li, B., Zu, X., Chen, M., Li, J., Shen, G., & Wang, S. (2025). Empirical analysis of the impact of technology import on industrial innovation in China: a technology expenditure perspective. Journal of Business Economics and Management, 26(1), 69–88. https://doi.org/10.3846/jbem.2025.22896
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Chen, Z. Y., Zhang, J., & Zheng, W. P. (2017). Import and innovation: Evidence from Chinese firms. European Economic Review, 94, 205–220. https://doi.org/10.1016/j.euroecorev.2017.02.008
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Dai, M., & Chen, Y. (2016). R & D, technology imports and innovation capacity – Evidence from high-tech industry of China. American Journal of Industrial and Business Management, 6(1), 24–32. https://doi.org/10.4236/ajibm.2016.61002
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Fonseca, T., Faria, P. D., & Lima, F. (2019). Human capital and innovation: The importance of the optimal organizational task structure. Research Policy, 48(3), 616–627. https://doi.org/10.1016/j.respol.2018.10.010
Frietsch, R., Kroll, H., & Jonkers, K. (2019). China’s development of an innovation-driven economy-an intermediate assessment. Innovation and Development Policy, 1(2), 85–103. https://doi.org/10.3724/SP.J.2096-5141.2019.0006
Gao, X., & Dong, Z. Y. (2022). Technological innovation and the complexity of imported technology: Moderating effects based on environmental regulation. Frontiers in Environmental Science, 10, Article 996867. https://doi.org/10.3389/fenvs.2022.996867
Gao, X., & Zhai, K. Y. (2021). Spatial mechanisms of regional innovation mobility in China. Social Indicators Research, 156, 247–270. https://doi.org/10.1007/s11205-021-02638-2
Gu, G., Malik, S., Pozzoli, D., & Rocha, V. (2024). Worker reallocation, firm innovation, and Chinese import competition. Journal of International Economics, 151, Article 103951. https://doi.org/10.1016/j.jinteco.2024.103951
Holemans, B., & Sleuwaegen, L. (1988). Innovation expenditures and the role of government in Belgium. Research Policy, 17(6), 375–379. https://doi.org/10.1016/0048-7333(88)90035-2
Karadag, H., Sahin, F., & Bulut, C. (2023). When does intellectual capital enhance innovation capability? A three-way interaction test. International Journal of Entrepreneurial Behavior & Research. https://doi.org/10.1108/IJEBR-12-2021-0976
Kim, J. B., & Stewart, C. T. (1993). The relation between technology import and domestic R&D. The Journal of Technology Transfer, 18, 94–103. https://doi.org/10.1007/BF02174808
Kishi, K., & Okada, K. (2021). The impact of trade liberalization on productivity distribution under the presence of technology diffusion and innovation. Journal of International Economics, 128, Article 103396. https://doi.org/10.1016/j.jinteco.2020.103396
Kwon, D., Lee, H. Y., Cho, J. H., & Sohn, S. Y. (2023). Effect of an open patent pool strategy on technology innovation in terms of creating shared value. Technological Forecasting and Social Change, 187, Article 122251. https://doi.org/10.1016/j.techfore.2022.122251
Lee, D. (2020). The role of R&D and input trade in productivity growth: Innovation and technology spillover. The Journal of Technology Transfer, 45(3), 908–928. https://doi.org/10.1007/s10961-019-09717-0
Lee, J. (1996). Technology imports and R&D efforts of Korean manufacturing firms. Journal of Development Economics, 50(1), 197–210. https://doi.org/10.1016/0304-3878(96)00010-7
Liao, H. W., Yang, L. P., Ma, H. N., & Zheng, J. J. (2020). Technology import, secondary innovation, and industrial structure optimization: A potential innovation strategy for China. Pacific Economic Review, 25(2), 145–160. https://doi.org/10.1111/1468-0106.12326
Li, B. Q., Li, J. Z., Dong, N. N., & Huang, L. (2021). Industrial transfer’s effect on competitiveness of the manufacturing: A case of Zhejiang, China. Singapore Economic Review, 66(3), 953–968. https://doi.org/10.1142/S0217590820500277
Li, X. B. (2009). China‘s regional innovation capacity in transition: An empirical approach. Research Policy, 38(2), 338–357. https://doi.org/10.1016/j.respol.2008.12.002
Liang, L., & Li, Y. (2023). How does government support promote digital economy development in China? The mediating role of regional innovation ecosystem resilience. Technological Forecasting and Social Change, 188, Article 122328. https://doi.org/10.1016/j.techfore.2023.122328
Liu, J. (2019). The roles of emerging multinational companies’ technology-driven FDIs in their learning processes for innovation: A dynamic and contextual perspective. International Journal of Emerging Markets, 14(1), 91–114. https://doi.org/10.1108/IJoEM-07-2017-0232
Liu, Q., Lu, R., Lu, Y., & Luong, T. A. (2021). Import competition and firm innovation: Evidence from China. Journal of Development Economics, 151, Article 102650. https://doi.org/10.1016/j.jdeveco.2021.102650
Liu, Q., & Qiu, L. D. (2016). Intermediate input imports and innovations: Evidence from Chinese firms’ patent filings. Journal of International Economics, 103, 166–183. https://doi.org/10.1016/j.jinteco.2016.09.009
Liu, R., & Rosell, C. (2013). Import competition, multi-product firms, and basic innovation. Journal of International Economics, 91(2), 220–234. https://doi.org/10.1016/j.jinteco.2013.08.004
Liu, X. L., & White, R. S. (1997). The relative contributions of foreign technology and domestic inputs to innovation in Chinese manufacturing industries. Technovation, 17(3), 119–125. https://doi.org/10.1016/S0166-4972(96)00090-9
Liu, X. H., Hodgkinson, I. R., & Chuang, F. M. (2014). Foreign competition, domestic knowledge base and innovation activities: Evidence from Chinese high-tech industries. Research Policy, 43(2), 414–422. https://doi.org/10.1016/j.respol.2013.11.005
Liu, J. X., Liu, T. Q., & Liu, Y. J. (2023). Innovation efficiency and path choice from the perspective of “capability-opportunity” – Empirical evidence from manufacturing industry. Systems Engineering, 41(2), 49–60.
Lu, C., Yu, B., Zhang, J., & Xu, D. (2021). Effects of open innovation strategies on innovation performance of SMEs: Evidence from China. Chinese Management Studies, 15(1), 24–43. https://doi.org/10.1108/CMS-01-2020-0009
Lu, Y., & Travis, N. G. (2012). Do imports spur incremental innovation in the south? China Economic Review, 23(4), 819–832. https://doi.org/10.1016/j.chieco.2012.04.005
Mitra, A. (2009). Technology import and industrial employment: Evidence from developing countries. Labour, 23(4), 697–718. https://doi.org/10.1111/j.1467-9914.2009.00461.x
Mazzi, C. T., & Foster-McGregor, N. (2021). Imported intermediates, technological capabilities and exports: Evidence from Brazilian firm-level data. Research Policy, 50(1), Article 104141. https://doi.org/10.1016/j.respol.2020.104141
Mohamed, M. M. A., Liu, P. F., & Nie, G. H. (2022). Causality between technological innovation and economic growth: Evidence from the economies of developing countries. Sustainability, 14(6), Article 3586. https://doi.org/10.3390/su14063586
Montégu, J. P., Pertuze, J. A., & Calvo, C. (2022). The effects of importing activities on technological and non-technological innovation: Evidence from Chilean firms. International Journal of Emerging Markets, 17(7), 1659–1678. https://doi.org/10.1108/IJOEM-05-2020-0534
National Bureau of Statistics of the People’s Republic of China. (2012–2020). China Statistical Yearbook. China Statistics Press. https://www.stats.gov.cn/sj/ndsj/
National Bureau of Statistics of the People’s Republic of China. (2012–2020). China Science and Technology Statistics Yearbook. China Statistics Press. http://www.tjnjw.com/hangye/k/zhongguo-keji-tongjinianjian.html
Ramírez-Alesón, M., & Fernández-Olmos, M. (2020). Intermediate imports and innovation performance: Do family firms benefit more? European Journal of Innovation Management, 23(5), 835–855. https://doi.org/10.1108/EJIM-05-2019-0116
Ramírez-Alesón, M., & Fernández-Olmos, M. (2021). Which intermediate import source is best for innovation in MNEs? Baltic Journal of Management, 16(4), 564–581. https://doi.org/10.1108/BJM-09-2020-0348
Reid, D. M. (2019). Absorptive capacity and innovation in China. International Journal of Emerging Markets, 14(1), 134–154. https://doi.org/10.1108/IJoEM-11-2015-0245
Rauf, A., Ma, Y., & Jalil, A. (2023). Change in factor endowment, technological innovation and export: Evidence from China’s manufacturing sector. European Journal of Innovation Management, 26(1), 134–156. https://doi.org/10.1108/EJIM-01-2021-0055
Shang, L., Tan, D., Feng, S., & Zhou, W. (2022). Environmental regulation, import trade, and green technology innovation. Environmental Science and Pollution Research, 29, 12864–12874. https://doi.org/10.1007/s11356-021-13490-9
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