TECHNOLOGY IMPORTS AND THEIR IMPACTS ON THE ENHANCEMENT OF CHINA INDIGENOUS TECHNOLOGICAL CAPABILITY

This article analyses the pattern of technology imports and its influe nces on China's indigenous technology. Indigenous technology consists of two dimensions: technology generation measured by R&D and spending on technical upgrading; and application measured by output value of he avy industry and its export value respectively. The analysis reveals i ncreased reliance on foreign loans to finance technology imports, dive rsified sources of supply, and strong emphasis on the purchase of dise mbodied technology after the late 1970s. Based on time series data fro m 1960 to 1991, statistical evidence indicates that imported technolog y has significantly enhanced China's technological build-up. Imported technology is positively correlated with both dimensions.