Technological progress is the key competitive ability of a society.A society's technological progress depends on it's ability of research and development (R&D) and the absorption of R&D spillovers. Since China is a developing country, which is comparatively short of R&D expenditure and activity, it is absolutely necessarily to utilize R&D spillovers. This paper analyses the relation among destination-specific AC (Absorption Capacity) , source- and destination-specific SS (Structural Similarity) and embodied technology spillovers by one-sector and three-areas GTAP models. The conclusion is:Being 'neutral' in nature, the exogenous Hicks-Neutral Technical Progress shock uniformly reduces the input requirements associated with producing a given level of output of stuff.
