The Impact of International Talent Inflow on Technological Innovation: The Moderating Role of Guanxi Culture and Social Trust

Abstract

This paper studies the effect of international talent inflow on technological innovation and the influence of the Chinese cultural environment on their relationship. Based on provincial-level data from 2000 to 2012, we construct a static panel data model to explore the effects of international talents on technological innovation and the moderating role of Guanxi culture and social trust in the above relationship. We find that international talent inflow positively impacts technological innovation. Guanxi culture significantly negatively impacts technological innovation and negatively moderates the relationship between international talent inflow and technological innovation. Social trust significantly positively impacts technological innovation and positively moderates the relationship between international talent inflow and technological innovation. The interaction between social trust and Guanxi culture has a significant positive effect on technological innovation. The study shows that different cultural environments have an essential impact on developing international talent’s innovation ability. This paper provides evidence for the need to improve China’s cultural environment and provides important implications for the formulation of talent policies. Based on this, we suggest improving the talent introduction system, optimizing the relationship culture, and building a good social trust system to promote regional innovation.