Do R&D Spillovers substitute or complement R&D investment?

The paper had an empirical analysis of the impact of R&D spillovers on own R&D investment based on a model on R&D spillovers occurring between domestic intra-industry, domestic inter- industry, international intra-industry and international inter- industry and the use of panel data of 15 high-tech large and medium-sized industrial enterprises (three yards) during 1995-2010. We found that there exists complementary effect between own R&D investment and domestic intra-industry R&D spillovers of 15 high-tech industries in China. Domestic inter-industry R&D spillovers promote own R&D investment. More important, Complementary effects exist between international inter-industry R&D spillovers and own R&D investment. However, international intra-industry R&D spillovers hinders own R&D investment. there exists substitution effect between international intra-industry R&D spillovers and own R&D investment.