Technology Transfer Channels and Innovation Efficiency: Empirical Evidence From Chinese Manufacturing Industries

This article analyzes the effects of three channels of technology transfer—global value chain participation (GVCP), foreign technology import (FTI), and domestic technology purchase (DTP)—on innovation efficiency by using 11 years of data from Chinese manufacturing industries. Empirical results show FTI and GVCP significantly facilitate innovation efficiency, whereas DTP decreases it. Further, absorptive capacity (AC) positively moderates the relationship between FTI and innovation efficiency. Moreover, in the high-tech industry, we find that GVCP positively affects innovation efficiency, and AC positively moderates the effect of GVCP on innovation efficiency. This finding is informative from a strategic perspective as firms can make strategic decisions in the selection of technology transfer channels. In addition, firms may also absorb and apply external technologies while developing AC to improve enterprises' ability according to their own organizational and strategic contexts in order to achieve and maintain competitive advantages. This finding provides convincing empirical evidence on the relationship between technology transfer channels and innovation efficiency and valuable lessons to other developing countries for the selection of technology transfer channels.