Foreign and domestic technologies play different roles in a country’s innovation. In recent years, Chinese firms have spent less on importing foreign technology and more on acquiring domestic technology. Based on the panel data model, state space model (SSM) and the Bayesian vector autoregressive model, this paper finds that the purchase of domestic technology plays a critical role in the innovation of high-tech firms with an elasticity coefficient higher than that of technology importation before 2010. China’s high-tech firms can effectively absorb purchased domestic technology, which also brings about an increase in their independent R&D input and contributes more to innovation output than imported technology. Performance of technology importation is lackluster but shows an improving trend. Technology importation is not correlated with innovation output and has a substitutive effect with independent R&D input. China is yet to enhance its absorption of imported technology. Elasticity coefficient of technology importation turned positive in 2007 and increased year by year. China should promote synergy between technology importation and domestic technology acquisition.
The Humanities and Social Sciences Planning Fund Project of the Ministry of Education: Study on the Determinants and Countermeasures of Coordinated Innovation Depth (17YJA630125)
Philosophical and Social Science Planning Project of Zhejiang Province: Study on the Evaluation System and Implementation Paths for All-Round Innovation in Zhejiang Province (17NDJC107YB).