Title
Spillover effects of FDI on innovation in China : evidence from the provincial data
Document Type
Journal article
Source Publication
China Economic Review
Publication Date
3-1-2004
Volume
15
Issue
1
First Page
25
Last Page
44
Keywords
FDI, Patent, Spatial effect, Spillover
Abstract
Foreign direct investment (FDI) can benefit innovation activity in the host country via spillover channels such as reverse engineering, skilled labor turnovers, demonstration effects, and supplier-customer relationships. Using provincial data from 1995 to 2000, we find positive effects of FDI on the number of domestic patent applications in China. This finding is robust under both pooled time-series and cross-section data estimation and panel data analysis and for different types of patent applications (invention, utility model, and external design). The spillover effect is the strongest for minor innovation such as external design patent, highlighting a "demonstration effect" of FDI.
DOI
10.1016/S1043-951X(03)00027-0
Print ISSN
1043951X
E-ISSN
18737781
Publisher Statement
Copyright © 2003 Elsevier Inc
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
Recommended Citation
Cheung, K.-y., & Lin, P. (2004). Spillover effects of FDI on innovation in China: Evidence from the provincial data. China Economic Review, 15(1), 25-44. doi: 10.1016/S1043-951X(03)00027-0
