Absorptive Capacity and Technology Spillovers: A Quantile Regression Approach

Employing a quantile regression estimator, the study presents new evidence on role of human capital in exploiting technology effects from foreign direct investment (FDI) low-technology industries. A model to capture non-linearity FDI according employees’ educational qualifications was developed. This examined whether workers’ absorptive capacity had different spillover at points conditional distribution. Although found that ability employees with degrees and diplomas exploit exceeds median quantile, it also acknowledges existence both ‘over-skilled’ ‘over-educated’ workers higher As problem shortages mismatch between skills education for still hinders firms applying advanced technologies FDI, this proposes using law make work universities. Firms could inform universities industry’s in-demand regularly get involved development university curriculum ensure graduates are equipped knowledge can be ‘transmitted’