The Study On Impact Mechanism Of Backward Linkages To Local Enterprises' Innovation Capability Of FDI

Against the background of foreign direct investment pouring into China, how to play the positive role of FDI effectively, introduce technology, and digestion, absorption and re-innovation is the reality and rational model how to enhance local enterprises' technological innovation capability. Study at home and abroad, FDI enterprises' technology spillovers are mainly embodied in the vertical linkage levels, not horizontal levels. It has theoretical and practical significance how to make use of backward linkages of FDI to promote local enterprises' innovation capability.The purpose of this paper is that the effect on FDI to the local enterprises' innovation capability, as well as which factors affect the occurrence of the spillover process, finally, using questionnaire survey to study that if FDI want to build backward linkages with local enterprises or not, and which factors effect it.Firstly, it used the data of China's 36 industries in 2001~2006, to proved the existence of backward linkages spillover to innovation. Using entity fixed effects regression model of industry-level panel data. In the model, build three variables to interpretation of the spillover effects, including horizontal spillover, backward vertical spillover and forward vertical spillover variable, used the input-output table of the direct consumption coefficient and direct distribution coefficient. Regression through econometrics software, the results support the existence of spillover effects to the innovation. Then we amendment to the model, proved that it is non-linear about backward spillover to innovation, and the spillover effects inverted U.Secondly, use of Eviws5.1 software, through the 36 industrial sectors data in 2001~2006, examined the effect factors of backward linkage spillover to innovation by two ways, such as build interaction variables or packet tests. The results showed that the technical opportunities, sensitivity coefficient, influence factors and the absorption capacity of the four factors on backward linkages to innovation of FDI have positive spillover effects significantly; technical intensity have a significant negative impact ; market competition showed inverted U.Finally, conducted a questionnaire survey to FDI enterprises in Tianjin, and used Logistic regression, to examined the impact factors of FDI enterprises set up backward linkages with local suppliers. Results showed that the main factors are domestic enterprises' product quality, the credibility of domestic enterprises, the host country trade openness, the degree of protection of intellectual property rights, investment ' country and the characteristic of industry.In this paper, the research conclusion of FDI backward linkages have an important and useful reference to improve the quality of FDI, as well as through the introduction FDI to improve China's capability of independent innovation of enterprises.