R&D, technology transfer and TFP

There are three avenues for Chinese technological advance: in-house R&D, domestic technology transfer and imported technology transfer. This paper examines the contributions of these avenues and their interactions on the TFP growth. The regression results show that low efficiency of R&D expenditure and limited spillover from technology transfer are main causes of yearly decreasing growth rate of TFP. Two parts of R&D, applied researches and experimental & development are functioning worse than basic researches. Domestic technology transfer substitutes the experimental & development and together impede the TFP growth.