Technology Spillovers in the Multinational Outsourcing System and Technological Innovation in Recipient Countries

Unlike technology spillovers from FDI or international trade, which operate through a single channel, technology spillovers from multinational outsourcing operate through the combined effect of multiple channels including import spillovers, export spillovers and pure knowledge spillovers. On the basis of the knowledge production function approach, this paper constructs an international R＆D spillover regression equation to test the effect of different technology spillover channels on technological innovation in China＇s manufacturing industry. Research shows that import spillovers are the only channel to have a significant effect, and this varies from industry to industry. Its significance is low in high- tech industry and medium-high in mid-tech and low-tech industries. Empirical findings indicate that China＇s local enterprises are unlikely to achieve technological innovation via ＂learning from importing＂ or ＂learning from communication.＂