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| Biased Technological Progress, Factor Substitution and Innovation Spillover Effect |
| Song Wei,Duan Lianxin,Zhou Yong |
| （School of Management, Xi`an University of Architecture and Technology, Xi'an 710055, China） |
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Abstract This paper constructs a logarithmic cost function model of biased technological progress under the framework of factor substitution, and estimates the impact of biased technological progress on innovation spillover effect by using China's industrial panel data from 2000 to 2017.The study found：capital and energy biased technological progress on innovation spillover has a significant negative effect, labor biased technological progress on innovation spillover has significant positive effects, while the intermediate goods had a positive effect on the partial technology progress innovation spillover is not significant.The elasticity of substitution variables into the model and found that when the capital, labor, energy and intermediate goods, the elasticity of substitution threshold were higher than that of 2.864 0, 5.234 1, 6.453 2 and 4.164 9, there has a significant positive effect to enhance partial technology progress on innovation spillovers.The findings of this paper show that the technological progress follows the innovation resources with comparative advantage, which is beneficial to enhance the spillover effect of innovation.
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Received: 07 November 2019
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