Technology imports and their impacts on the enhancement of China's indigenous technological capability

Abstract

This article analyses the pattern of technology imports and its influences on China's indigenous technology. Indigenous technology consists of two dimensions: technology generation measured by R&D and spending on technical upgrading; and application measured by output value of heavy industry and its export value respectively. The analysis reveals increased reliance on foreign loans to finance technology imports, diversified sources of supply, and strong emphasis on the purchase of disembodied technology after the late 1970s. Based on time series data from 1960 to 1991, statistical evidence indicates that imported technology has significantly enhanced China's technological build‐up. Imported technology is positively correlated with both dimensions.