Study On Effect Of FDI To Technical Innovation In China's High-Tech Industry

With the rapid rise in the global knowledge economy, technical innovation has been one of the important driving forces and sources of a country to maintain sustainable development in economy. High-tech industry is a knowledge-intensive and technology-intensive industry. Technical innovation is the life of high-tech industry and the technical innovation ability of high-tech industry has become the core of the international competitiveness of various countries. On the other hand, the inflow of China's foreign direct investment (FDI for short) has increased rapidly and China has become one of the countries which attract most FDI in the world since 1990s. At the same time, high-tech industry has become a foreign investment-intensive area in China.On the basis of colligating and absorbing the related theory at home and abroad, this thesis analyzes the interaction mechanisms and influencing factors of FDI to the host country's innovation and it also analyzes the present state of the utilization of FDI in our country's hi-tech industry and technological innovation. In the empirical analysis, it studies the influences of FDI to technological innovation of China's high-tech industry by using the panel data of China's 13 high-tech industries from 1998 to 2007. The empirical results show that the demonstration effect and personnel turnover effect may stimulate the promotion of the innovation ability of the domestic enterprises. However, FDI engenders competitive effect against the R&D of domestic enterprises. The push effect of FDI to technological innovation of domestic-funded enterprises in China's high-tech industry is not notable, which is because FDI's positive spillover effects in technological innovation offset it's negative spillover effects. From the perspective industry features, both the technology gap of the domestic and foreign-funded enterprises and the industrial intensity of domestic-funded enterprises will influence the spillover effects of FDI on technological innovation of China's high-tech industry. The industries with relatively smaller technology gap produced larger demonstration effect and smaller personnel turnover effect than the industries with relatively larger technology gap. The overall spillover effects of industries with relatively smaller technology gap and industries with relatively bigger technology gap are both weak but the former is stronger than the latter. The industries with low technological intensity produced smaller demonstration effect and larger personnel turnover effect than the industries with the high technological intensity industries.The overall effects of industries with low technological intensity domestic-funded enterprises is to promote the technological innovation capability, whereas the effect to high technological intensity industries is the opposite and it is not significant. Whether analyzed on the whole or from the perspective industry features, the scientific research personnel and research funds in domestic-funded enterprises both contributed to the upgrading of technological innovation and the contribution is large. The results show that it is a supporting role that China's high-tech industry enhances technological innovation capability through FDI's spillover effects on technological innovation. Recently China's R & D investment is still the main source to promote its technology innovation capacity; China's domestic high-tech enterprises should pay more attention to their own research and development and improve the capability of independent industrial innovation when they are enjoying the spill-over effects.