Impact of China's Import and Export Trade on Innovation

Abstract

Import and export trade is a very important economic indicator in a country's economic development, and science and technology innovation is a necessary journey for China to move from rapid economic development to high quality development. Import and export trade can lead to technology transfer, so changes in import and export trade can affect science and technology innovation to a certain extent, and innovation can also affect the production of products, thus affecting the import and export trade of a country. By collecting China's foreign trade and scientific and technological innovation input-output from 2003 to 2022, and comparing the trends of export products, scientific and technological innovation input-output, and trade dependence, the study found that due to its low position in the international value chain, China's R&D investment has relatively little impact on the value of export products. The structure of China's research and development investment is not reasonable, which leads to the slow growth of exports. China's import trade dependence is relatively high, which may give rise to risks. Accordingly, this paper advocates that China should attract foreign investment to promote innovation capabilities. Changing the structure of R&D investment to promote investment conversion rate. And expanding domestic demand to achieve sustainable economic growth.