Research On The Impact Of FDI On China's Technology Innovation

Against the backdrop of economic globalization, the extent of China's opening is further enlarged, the scale of attracting foreign direct investment (FDI) is also enlarged, foreign direct investment has become an important part of China's economic life, while technological innovation is an important driving force of modern economic growth, also it is the basis for the countries and regions to maintain long-term economic stability and rapid development. Therefore, to research the impact of FDI on China's technology innovation is of great practical significance.This dissertation is based on a large number of literature's study, first of all, the status of using foreign direct investment and implementing technological innovation activities in China's domestic and foreign-funded enterprises is roundly analyzed and summarized as the basis of deeply studying. In the specific empirical analysis, by using 1998-2007 panel data of China's 29 provinces and cities, the impact of FDI on China's technology innovation is analyzed from the aspect of its output and input, in order to study the impact of FDI on China's technology innovation in different areas with different level of economic and technological development in depth, deep research on this issue is done in dividing into three regions which are the east, the central and the west. According to empirical analysis, this paper drew the following two main conclusions: 1.FDI has a significant promoting effect on the output capacity of technical innovation in domestic enterprises in the national and eastern and western regions, but the effect on the central is not obvious. 2. FDI has a significant promoting effect on the input capacity of technical innovation in domestic enterprises in the national, eastern, central and western regions, and it promotes the east most, the next are the central and the west. Finally, relevant policy recommendations and the deficiencies and further research's directions of the dissertation are pointed out based on the empirical conclusions.