Influence of export on innovation activities of domestic enterprises

Using the panel data from 2001 to 2003 across manufacturing industries in China, this paper analyzes the intra-industry and inter-industry spillovers from export on the productivity and innovation activities of domestic enterprises in China. Among the industries we investigate and in the sample session, there are evidences of positive backward linkage spillovers to the process innovation of domestic enterprises, and negative backward linkage spillovers to the product innovation activities. Based on the findings, we make some policy suggestions.