The Theoretical And Empirical Study Of Economic Openness Promote Technological Innovation

In the process of economic globalization, technology diffusion leading by international trade and FDI has greatly facilitated the exchange of new technologies and innovation, so as to promote the economic development of countries. This paper studied the impact factors of technological innovation under the conditions of open economy; explored functions and impacts brought by international trade, foreign direct investment on China's technology innovation in different levels.Firstly, the influence which have impact on China's technological innovation, is divided into eight aspects as follows:enterprise organizational structure, basic features of business, corporate human resource situation, enterprise technology environment, business international connections, enterprises facing the government environment, business market environment, and corporate finance environment. It established binary choice model with factors influencing China's technology innovation. It collected the data separately from 1548 enterprises in Beijing, Tianjing, Shanghai, Guangzhou and Chengdu in 5 classes manufacturing enterprises (electronic aid, electronic component, transportation equipment, spare part and so on) and also another 5 classes services companies (advertisement, marketing, information technology service and so on). The paper empirical studied factors which have impact on technological innovation in China, examined impact from FDI, international trade and technology licensing those three types of international technology transfer on enterprise technology innovation. The empirical results show that:the number of corporate R&D and government support for business R&D has contributed significantly to technological innovation; length of Chinese enterprises establishment, R&D investment, decision-makers'level of education, government R&D support, imports can significantly drive business innovation activities occurring; private enterprises technological innovation had a great contribution, compare to state-owned enterprises from relatively developed areas, state-owned enterprises from less developed areas have a more contribution; regarding the impact of international transfer on technological innovation, foreign majority of foreign ownership has a negative role to technology innovation. The length of business establishment, training opportunities and human capital level to technological innovation has varying degrees of encouraging role. Secondly, this paper discussed the relationship between business export behavior and business productivity, examined the existence of learning-by-exporting. By adopting survey data from more than 1000 typical companies in China, constructed a flexible translog production function using export of state variables, examined the relationship between export behavior and corporate productivity. The result showed that the productivity of export enterprises is 20%-30% higher than non-exporting enterprises. This productivity advantage is the result of "learning-by-export", which means enterprises participate in the export have promoted productivity. This theory hypothesis provided empirical evidence from China, further recognized export-oriented development strategies on the contribution of China's economic growth from the micro perspective.Thirdly, this paper discussed mechanisms and channels of technology spillovers to foreign direct investment from the industry perspective, was divided into FDI horizontal spillovers and backward spillover effects. It adopts industry employed persons and output data separately to measure these two different levels of technology spillover. By using data from industry level, it empirical studied mechanisms and channels of FDI technology spillover. Studies have shown that foreign direct investment in China's industry did not produce the level of horizontal spillover effects, but there are positive effects of backward links; in labor-intensive industry, there is a negative competitive effect, but also positive spillover effects as the labor force have returned to their domestic counterparts from foreign enterprises. The specific performance of FDI technology spillover mainly depends on the overflow channels and industry by their own characteristics.Finally, this paper discussed the affect mechanism of intellectual property protection putting on FDI and technological innovation and established an empirical model. By using balancing panel data from 1995 to 2007 in provinces, it studied how intellectual property protection and FDI affect technological innovation. The result showed that China's technological innovation capability mainly comes from the R&D capital investment. Raising the level of intellectual property protection does not significantly promote the upgrading of China's technology innovation capability. These conclusions won't change even though as different selecting indicators of technical innovation capability. However, this affects has regional differences, about provinces around Bohai Sea and the Straits there is a certain promoting affect, while in the central, western and northern Gulf area, raising the level of intellectual property right protection inhibited the ability of technological innovation to some extend. International trade and FDI could significantly promote the upgrading of domestic technological innovation capability, but FDI on China's role in promoting technological innovation was influenced by the level of intellectual property rights protection, strengthen IPR protection levels could promote FDI effects to technological innovation.