International Fragmentation of Production and China's Technology Innovation: Empirical Analysis on China's Data

Abstract

Based on the data of China's industry from 1992 to 2009, this paper analyses the relationship between the International Fragmentation of Production (IFP) and China's technological innovation empirically. The results show that IFP promoted the capacity of China's technological innovation, and then the promotion of technological innovation stimulated the output of our processing trade. Finally the paper puts forward the countermeasures to participate in the IFP and improve the capacity of China's Technological innovation.