Research On Cooperation And Co-Evolution Between Foreign Capital R&D And Self-Innovation System And Effects Of R&D Subsidy

Building innovative nation depends on a valid national innovation system(NIS).Foreign research and development(R&D)in China not only helps to build an innovative country with achieving the goal of self-innovation strategy,but also helps to promote self-innovation entities' embedding into the international R&D network.After the global economic crisis in 2008,multinational enterprises(MENs)from the United States,Japan,the EU and Singapore have gradually been increasing their R&D investment in China.MENs have built innovation networks by introduction of talents,R&D and market alliance,through which foreign capital R&D had embedded into the NIS.Relying on advantages of position in international industrial chain and advanced capability of new technologies development,foreign capital R&D institutes' early demonstration and spillover effects have led to the endogenous motivation of self-innovation.With the enhancement of China's self-innovation capability,the relationship between foreign capital R&D and self-innovation system has shown some new characteristics.The shift from the single structure of technology diffusion to embeddedness of multi-structure network and R&D cooperation has arisen.MENs has become one of key components of China's NIS.This paper,taking the cooperation and co-evolution relationship between foreign capital R&D and China's self-innovation system as object,constructs a model illustrating cooperation and co-evolution relationship of the two subsystems.Firstly,it uses the method of social network analysis to measure the structural characteristic of the cooperation network between foreign R&D and self-innovation system based on the investigation of domestic and multinational institutions or R&D centers.And then the theory of dissipative entropy and a classical model named Brusselator model are introduced to measure entropy of cooperative network and its status.Secondly,from the perspective of ecosystem,this paper puts forward the evolution law of the symbiosis and co-evolution between foreign investment R&D and self-innovation,and then it constructs a model to reveal the law of the two subsystems'co-evolution by using three-level coding.Thirdly,the paper constructs a conflict analysis model and explores the conflict and adjustment mechanism in the cooperation and co-evolution between foreign R&D and self-innovation system in China.Fourthly,based on the above-mentioned model and conflict analysis,the paper examines the effects of government R&D subsidy,which drives cooperation and co-evolution between the two subsytems.Then the path and machasim of the policy effects are analyzed.The main innovative works of this paper are as follows:(1)Drawing the structural characteristics of the cooperation networks between foreign capital R&D and self-innovation system in China.Based on the investigation and statistical description on R&D centers established in China by multinational enterprises,the paper measures the spatial differences of the cooperative network aggregation coefficient,centrality,structural hole and other structural characteristics,as well as the cooperation network's status.And then method of social network analysis and Brusselator model are used in the measurement.The conclusion implies that the aggregation coefficient of the cooperation network between foreign capital R&D in China and self-innovation system is still low,and the foreign capital institutions have been in the advantage position of the cooperative network,while most of self-innovation entities are still on the edge of the network except for a few of universities and scientific research institutes.The result of the measurement on the status of the cooperative network using the dissipative structure theory also shows that the foreign investment R&D networks in Eastern China and the main central cities has not yet reached the critical point of the dissipative structure.While the central and Western Regions and central cities of the cooperation network is still far from the critical point.(2)Building a model to imply the cooperation and co-evolution between foreign capital R&D and self-innovation system in China.And the relationship of symbiotic and co-star paradigm between different innovation sub-system is put forward under the concept of innovation ecosystem.Using the qualitative research method,the paper collects the valuable information which can reflect the relationship between the foreign R&D and self-innovation system.By using the three-level coding paradigm of the grounded theory,it carries out open coding,spindle coding and selective decoding step by step.And the story lines implying the relationship between the two subsystems as well as some main categories are put forward,through which cooperation and co-evolution model is constructed.The model reveals inherent laws of foreign capital R&D's embedding into NIS of China.It is believed that the network embeddedness of foreign capital R&D have passed through multiple ecological process including industrial ecology,commercial ecology and cultural ecology.Its path of embedding can be divided into four stages:basic information search,enterprise network embeddedness,industrial network embeddedness and localization;the system partial impact in interdependence symbiosis System tension and breakthrough are the necessary conditions for the two kinds of subsystems to coexist.(3)Analyzing the conflict and its equilibrium solution in the process of cooperation and co-evolution between foreign capital R&D and self-innovation system in China.And it analyzes the different forms of alliance between the foreign capital R&D institutions and the self-innovation entities in the conflict.The decision-makers in the conflict are identified including foreign capital R&D institutions in China,university research institutes,domestic enterprises and government.And then the Graph Model of Conflict Resolution(GMCR)is introduced to analyze the strategies of different decision-making agencies.The resulting strategy set is also provided.It is assumed that there are two situations that is government(by carrying out R&D subsidy)intervention and an-intervention.Then the paper draws the graph model of the transition of the conflict reachable state,and the individual stability and the global stability under the two situations are solved respectively,and also the alliances among different decision makers in the conflict are obtained.It is believed that government subsidy does not change the optimal strategy choice of decision-makers in the global stability outcome and the alliance behavior among self-innovation entities.However,as a regulative signal,government subsidy leads to the resolution of new conflict and four forms of alliance.Under the regulation of government subsidy,foreign capital R&D institutes tend to adopt the advanced technology of their parent companies and absorb the local frontier technologies.The dual strategies foreign capital R&D implements have enhanced network embeddedness,while self-innovation entities tends to build internal alliances to respond to the adjustment.(4)Testing policy effects of R&D subsidy on promoting cooperation and co-evolution between foreign capital R&D and self-innovation system in China.Methods of propensity score matching(PSM)and simultaneous equations(SEM)are used to test the inherent mechanism of the effects of R&D subsidy.Causal inference based on PSM confirms that R&D subsidy is the main cause leading to differences in cooperation degree and innovation outputs.The endogeneity test based on instrumental variable confirms the endogeneity of R&D subsidy,R&D cooperation degree and innovation outputs.Four simultaneous equations including R&D subsidy equation,R&D cooperation equation,innovation efficiency equation and innovation outputs equation are built.Using SEM,micro-mechanism of the effects of subsidy policy is explored,and the path of the policy effects is clarified,that is,R&D subsidy and R&D cooperation have significant endogenous nature,and government R&D subsidy leads to the cooperative behavior of foreign capital R&D and the self-innovation entities.The behavior of R&D cooperation also increases the opportunity for foreign capital R&D to obtain R&D subsidy from government;R&D cooperation significantly improves the efficiency of foreign capital R&D in China,and thus promotes its innovation output.