A Spatial Regression Analysis of the Influence of Potential Determinants on Technology Spillover: Evidence from the Level of Province and Central City in Vietnam

Abstract

The article uses the I-Moran index to analyze key factors affecting technology diffusion across regions in Vietnam. Based on data collected from 62/63 provinces in Vietnam over the period 2011-2018, the estimated results of the knowledge production function (KPF) model show that the foreign direct investment (FDI) factor might inhibit the spread of technology across regions by several different reasons. At the same time, the study suggests that high-quality training facilities and research staff are key input factors driving technological progress across regions. Furthermore, the results also show that regional technological progress is positively influenced by neighboring regions. Based on empirical evidence, the study proposes several policies related to the strategies for attracting FDI as well as the strategies for technology development in Vietnam for the future.