Technology Innovation's Region Nonlinear Research: Evidence from China's OFDI

The paper uses threshold test method to measure the regional absorptive capacity which based on economic development, R&D level and human capital. Results show that GDP, per capita GDP and the development of higher education level have single threshold. R&D spending has double threshold as well as R&D density. Human capital stock exists triple threshold. Absorptive capacity over a certain threshold, the effect of OFDI technology innovation will be improved significantly in some parts of China. A small number of eastern coastal areas can effectively absorb the OFDI technological innovation effect. The vast majority of central and western regions still not across the high threshold of absorptive capacity.