Technological regime, fdi spillovers and technological marginalization - empirical study of Chinese manufacturing industries

As one factor of industrial environment, technological regime influences innovative activities of both foreign and domestic enterprises, and further influences technological spillovers from foreign enterprises to domestic enterprises. By analyzing panel data of 28 Chinese manufacturing industries, we come to the conclusion that, from view of host countries, two aspects of technological regime—local enterprises' technological capabilities and accessibility of external knowledge flows—are two key factors influencing FDI spillovers; fluidity of technological trajectory also affects FDI spillovers, but its influence is very small; other aspects like technological opportunities, appropriability of innovations and properties of the knowledge base constitute little obvious impact to FDI spillovers statistically. With more FDI companies pouring into China, Chinese enterprises are confronted with threat of technological marginalization due to lack of own core technologies. Therefore, how to keep away from technological marginalization threat is the strategic issue related to sustainable development of Chinese international competitiveness.