Structural defects of industrial system and impacts on CEC's technology diffusion: an approach of multi-regional industrial technology flow tree

Abstract

The Capital Economic Circle (CEC) is one economic growth pole and occupies important position in China. However, imbalance of allocation of technological resources leads to heterogeneous industrial productivity and economic development in the CEC. To analyze and solve this problem, we combined input-output and network methods to explore structural defects of technology diffusion system of CEC and effective measures to promote industrial technology synergy and integrated development. Firstly, the principles of Multi-Regional Industrial Technology Flow Tree (MR-ITFT) modelling and methods were proposed. Secondly, the structural indexes and the effect indicators including technology spillover and absorption intensity, and spillover and absorption multiplier were designed based on MR-ITFT, which were applied to identify structural defects of industrial system and its effects on technology diffusion. The empirical research shows that heterization and polarization, imbalance of supply and demand, non-integrated vertical function, and centralization and convergence in industrial technology system are structural factors that interferes the circulation of technology flow, and further was reflected in the reduced, inverse and unstable structural effects. Contradiction between low return and high demand of technology investment results in an unsustainable circulation system of CEC. Construction of industrial technology system with high integration and cooperation was suggested.