The Effect Analysis Of Manufacturing FDI On Technology Innovation In Zhejiang And Jiangsu Province

Innovation is an eternal theme of human survival and development, China should regard innovation as a top priority, to establish an innovation-oriented country. And in the contemporary context of economic globalization, in order to assess the substantive impact of FDI on the host country, we should study its role in technological innovation on the host country. So the paper targets manufacturing which has the largest FDI and Zhejiang and Jiangsu province who have higher economic development. Then it studies the impact of manufacturing FDI on technology innovation in Zhejiang and Jiangsu Province, then conduct an comparative investigation into them.On the basis of analysis on the development of manufacturing, FDI and the technological innovation input-output in Jiangsu and Zhejiang Provinces, the paper leads to necessary of the study. Then itr reviews the theory and empirical research literatures about relationship between FDI and technological innovation in the host country and sums up them briefly. Next it educes the mechanism that FDI has an impact on technical innovation in the host country. Then it focuses on the Jiangsu and Zhejiang Provinces, and test the theme from the overall manufacturing level and different types of industries. At last it puts forward relative suggestion.On the basis of the mechanism that FDI has an positive impact on technical innovation in the host country, it educes that Zhejiang and Jiangsu province manufacturing FDI have a significant positive impact on their technical innovation output. However, owing to the different levels of the industrial structure, the effects are different. Jiangsu FDI in manufacturing has a greater impact on technical innovation output; With the process of time, Zhejiang manufacturing has a greater effect on the output of innovation; As to the sub-sector analysis, FDI has greater impacts on industries such as greater technology gap between domestic and foreign-funded enterprises and technology-intensive in the industries. After the light of these conclusions, we conclude that Zhejiang and Jiangsu should introduce foreign capital that is high-quality, rooted highly, and can enhance the ability of local technological innovation. Local enterprises should also play a positive initiative and strengthen ties with multinational corporations, thereby enhancing its capabilities in technological innovation.