The OLS ignores its spatial property when testing R＆D＇s international spillover, and the existing spatial econometric research makes a bias to its parameterization. This paper corrects the parameterization bias of spatial spillovers and divides it into three parts： direct effect, indirect effect and total effect. By using a cross-section sample of 300 Chinese Prefectural-Level cities in 2008 and based on Spatial Durbin Model, this paper proves that direct effect of FDI improved technology progress of locus but indirect effect weakened techno...
