Technical Spillover, Skill Premium and Manufacturing Technological Innovation

By using industry panel data from 2001 to 2010 and applying 2SLS, 3SLS method, this paper examines the effects of FDI spillover on the skill premium. Furthermore, it analyzes the function of skill premium on the manufacturing technological innovation with fixed effect model. The result shows that both spillover effects and trade openness can expand wage inequality amplitude, while the increase of relative supply of scientific and technical personnel, R&D density and capital output ratio can reduce premium. The increase of skill premium stimulates manufacturing technological innovation, and the promotion of enterprises' own manufacturing capacity is the source power of technological innovation. Whether with the sales as weight or number of employees for the weight, the results of technical spillover are negative correlation.