The Empirical Research Of The Effect Of FDI On Manufactureing Technology Innovation In China

In the past years, the implementation of the "Exchange market for technology" in China had made significant contributions to increase domestic employment, exports and promote the upgrading of industrial structure, and FDI becomes one of the most important variables for the creation of development miracle of China. However, the giving up of the market hadn't brought corresponding upgrade of technology, instead, the deficiency of core technology turned up, which is indeed amazing but we has to face. In order to explore the plight of China's economy, we selected the manufacturing industry as researching object.In oreder to learn fully of the relationship between FDI and technology innovation, this article has sorted existing related articles about this, based on the existing theories and methods, the current status of the relationship between China'FDI and technology innovation on manufacturing industry was analyzed and the ability of technological innovation of China's manufacturing industry has the following characteristics:different manufacturing sectors show different innovation capability. The technology-intensive industries are strongest in terms of overall innovation capability. Among the top 10 innovative industries, technology-intensive Industry accounted for 7; innovation capability of labor-intensive industries such as textiles, tobacco processing industry, leather, fur, down and down products industry and the furniture manufacturing industry is relatively higher, capital-intensive industries, only the ferrous metal smelting and rolling processing industry sectors show impressive innovation. Leather, fur, down and down products industry (H7) is a clear turning point of the industry's innovation, the subsequent ability to innovate of the industry see extremely slow downward trend, as a demarcation point to the industry's ability to innovate. So the innovation higher than H7 is called Innovate industry.Otherwise we call them low innovation industries.In the theoretical analysis, case studies and econometric analysis, we get the following conclusions:(1) in technological innovation theory and theoretical research fields of FDI, there is a certain amount of link:In fact, FDI,as a source of innovation, its spill process and the process of technological innovation have a lot of similarities, FDI's spill channels include:Model, competition, links, training and so on,innovative incentive system include: technology,market,ability and so on,and the demonstration effect and link effect'results direrctly cause the changes of technological opportunities, competitive effect'result Corresponds to the market structure Change, the training effect brought about the change of host enterprise's ability. At the same time, the host country's policy environment has affected the inflow of FDI to some extent, and its own ability has affected the occurrence of various effects. Although the role of FDI are various, but in view of the technical spill, in fact,the result of spill brings technological innovation of the host country industries, as well as technological progress.(2) Technology spillover effects come out through backward and forward linkages with China's local enterprises, which deviated from the target of foreign direct investment. So multinational corporations in China try to use a variety of technical means to reduce or eliminate positive effects of direct investment, even including reverse spread of technology, which is, the foreign companies may control equity, intellectual property protection, mergers and acquisitions strategy and human resources in order to control the spread of reverse transfer of technology implementation technology control. Empirical Analysis of FDI technology spillovers in the manufacturing has found:from the overall point of view, foreign capital spillovers in the manufacturing sector is still relatively obvious; Classifying the industries based on technology gap between local companies and foreign companies, I find that the group with higher technology gap doesn't show significant foreign capital spillover effect; Then I make out two groups according to the openness to foreign-invested enterprises. And the result demonstrate that variable, foreign capital is not significant, concluding that the degree of openness to foreign-funded enterprises doesn't affect spill effects remarkably.(3) Using panel data to explore the effect of FDI toward innovation capability of the manufacturing sector,such conclusions are drawn: foreign investors in manufacturing industry are not as obvious role in promoting innovation as previous studies claimed; Firstly I take the output value of new products of local companies as explanatory variable,the results show that foreign-funded enterprises imposes obvious negative effects on innovative output of domestic companies; market competition is not conducive to enhance the capacity of industry innovation, which is because China's manufacturing industry in general is still in the low-end value chain of the global market, most of whom win profit by low'.cost. And excessive waste of resources resulted from competition further reduce the profit space of the domestic enterprise, which is not conducive to innovation output; when I take the number of patent application for the explanatory variables, the study shows that foreign-funded enterprises may contribute to innovation, though insignificant; Finally, I take the traditional advantage of industry as an example, and find that the technology gap between foreign investment and domestic enterprises is in favor of innovative output of domestic enterprises.