2012
DOI: 10.1080/00343404.2010.520694
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Regional Innovation and Spillover Effects of Foreign Direct Investment in China: A Threshold Approach

Abstract: Abstract:Using a data set on 29 Chinese provinces for the period , this paper establishes a threshold model to analyse the relationship between spillover effects of foreign direct investment (FDI) and regional innovation in China. There is clear evidence of doublethreshold effects of regional innovation on productivity spillovers from FDI. Specifically, only when the level of regional innovation reaches the minimum innovation threshold will FDI in the region begin to produce positive productivity spillovers. F… Show more

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Cited by 54 publications
(35 citation statements)
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“…One reason is that these empirical results largely depend on the method of measuring the absorptive capability of the host economy (Liu and Nishijima, 2013). From this viewpoint, Todo and Miyamoto (2006), Fu (2008), Lööf (2009), andHuang et al (2012), all of which have stressed the role of R&D activities as an intermediate factor of technology transfer, are noteworthy. Therefore, in this paper, we will use R&D potential as a proxy for the absorptive capability of Russia instead of the average education level in the recipient country, which has been adopted by many preceding studies on developing economies, in order to reexamine the absorption capacity hypothesis in the case of the Russian regions.…”
Section: Examination Of the Absorptive Capacity Hypothesismentioning
confidence: 99%
“…One reason is that these empirical results largely depend on the method of measuring the absorptive capability of the host economy (Liu and Nishijima, 2013). From this viewpoint, Todo and Miyamoto (2006), Fu (2008), Lööf (2009), andHuang et al (2012), all of which have stressed the role of R&D activities as an intermediate factor of technology transfer, are noteworthy. Therefore, in this paper, we will use R&D potential as a proxy for the absorptive capability of Russia instead of the average education level in the recipient country, which has been adopted by many preceding studies on developing economies, in order to reexamine the absorption capacity hypothesis in the case of the Russian regions.…”
Section: Examination Of the Absorptive Capacity Hypothesismentioning
confidence: 99%
“…Regional innovation capability is often measured by regional patent applications as intermediate innovative outputs Liu and White, 1997;Usai, 2011;Wang and Zhou, 2013). Patent application count accurately represents innovation capability of individual regions as the same patent application standards and procedures are applied across regions (Huang et al, 2012;Usai, 2011). Following Paci andUsai (1999), Fu (2008) and Huang et al (2012), we use the number of total domestic patent applications per 10,000 inhabitants as the primary dependent variable, which reduces the heterogeneity of territorial units.…”
Section: Methodsmentioning
confidence: 99%
“…However, Hansen [79] provides an inequation for calculating the area of rejection. When LR 1 (λ) > −2 ln(1 − √ 1 − α), the null hypothesis would be rejected, where α is the level of significance [80].…”
Section: The Principle Of Estimating and Testing The Thresholdsmentioning
confidence: 99%
“…However, there may be more than one threshold. Next, we express how to estimate the coefficients of variables for a double threshold model briefly, and a multi-threshold model can be extended based on the single threshold model [80]. The double threshold model is as follows:…”
Section: The Principle Of Estimating and Testing The Thresholdsmentioning
confidence: 99%