Technology Importation, Institutional Environment and Industrial Upgrading: Evidence from China

Considering the importance of technology for industrial structure upgrading, especially under the impetus of the fourth industrial revolution, the paper examines the impact of technology importation on industrial structure upgrading in 31 Chinese provinces from 2002 to 2020. It also emphasises the moderating role of institutional environment based on two dimensions of industrial upgrading. The findings indicate that technology importation has a positive effect on industrial advancement; however, its impact on industrial rationalisation is not significant. A higher-quality institutional environment can indirectly contribute to the impact of technology importation on industrial upgrading. Finally, the effects of technology importation and institutional environment on industrial upgrading vary with regions, and there are also differences in the moderating effects of different aspects of institutional quality. Therefore, the article suggests that technology should be introduced according to the institutional environment of different regions, and the government should develop personalised industrial upgrading strategies.