Productivity Spillovers from FDI, Absorptive Capacity and Self-innovation Capabilities of Resource Area: Evidence from 1992–2013 in Shanxi, China

Abstract

The resource areas development is facing increasingly serious challenge in post-crisis era; it is essential to propose a reasonable approach for improving the self-innovation capability of resource area by using technology spillover of foreign direct investment (FDI) and applying absorptive capacity as the conduction medium. Based on the development characteristics of resource areas, the ‘micro-meso-macro’ view three-dimensional conceptual framework of FDI spillover, absorptive capacity and self-innovation capability was constructed. Then, the empirical analysis was conducted in three steps: first, the FDI technology spillover effects between Shanxi and three eastern provinces (Jiangsu, Liaoning and Hebei) were compared; second, the absorptive capacity and the relative factors were compared; third, by taking Shanxi province as an example, the relationship between FDI technology spillover and the self-innovation capacity was verified and the conduction medium role of absorptive capacity was investigated. Finally, by combining the theoretical and empirical analysis, three suggestions were put forward for reference.