Template-type: ReDIF-Paper 1.0 Author-Name: Wang, Lili Author-Email: wang@merit.unu.edu Author-Workplace-Name: UNU-MERIT/MGSoG Author-Name: Meijers, Huub Author-Email: huub.meijers@maastrichtuniversity.nl Author-Workplace-Name: School of Business and Economics, Maastricht University Author-Name: Szirmai, Eddy Author-Email: szirmai@merit.unu.edu Author-Workplace-Name: UNU-MERIT/MGSoG Title: Technological spillovers and industrial growth in Chinese regions Abstract: This paper focuses on the role of interregional technology spillovers in the process of industrial growth in Chinese regions in the period 1990-2005. Inflows of FDI increased rapidly from 1990 till 1998, slowing down thereafter. Domestic R&D investment accelerated after 1998. Regional industrial growth benefits from both interregional R&D spillovers and after 1998 from international FDI spillovers. However, in contrast to R&D spillovers, FDI spillovers contribute conditionally, mainly in areas where local R&D stocks are high enough. Interestingly, indirect interregional FDI spillover effects are negative. Foreign investment in one region attracts resources from regions with less FDI, thus having a negative influence on growth of industrial output in neighbouring regions. Classification-JEL: F43, O14, O33, R11, R12 Keywords: Technological spillovers, Interregional spillovers, R&D, Foreign direct investment, Industrial growth, Regional growth, Chinese industry Series: UNU-MERIT Working Papers Creation-Date: 2013 Number: 044 File-URL: http://www.merit.unu.edu/publications/wppdf/2013/wp2013-044.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2013044