The Absorptive Capacity's Moderating Role in Technology Spillovers Effect —An Empirical Study Based on Manufacturing Firms From Guangdong Province

This paper examines the absorptive capacity's moderating effect in technology spillovers on domestic firms' productivity progress,based on the panel data of manufacturing firms in Guangdong province from 2001 to 2007.The results show that: domestic firms' absorptive capacity can significantly enhance their productivity.The absorptive capacity moderates the relationship between technology spillovers and firms' productivity progress.The moderating effect turns to be positive through backward linkages,and negative through horizontal channel and forward linkages.This effect of absorptive capacity is particularly evident on the private firms.