Research On Technology Spillover Of FDI In China

The foreign direct investment is one of the most factors of the Chinese economicgrowth. And it also is the most factor of Chinese technology improvement byabsorbing the foreign direct investment technology spillovers. The strategy of"exchange technology by market" made contributions in capitalization, employment,export and industrial structure upgrading of China greatly in past years, on thecontrary, the promotion of Chinese self-innovation ability is so slow that there isserious tech-depending in some industry. It is just the reason of the paper to resolvethe problem of Chinese economics, the author study the situation of spillovers inChina and its factors which affects the spillovers.The essay discusses the situation of FDI in China by qualitative analysis, refers tothat the quality of FDI in China has limited the technology spillovers. The author doessome positive analysis by quoting a dynamic model to check the situation. Theanalysis shows that the effect of FDI spillovers in China in the long run is positive,but its coefficient is very small. It is so different with other scholars' results. By study-in the methods of much positive analysis, the author finds that most models are builtfrom the prospective of technology suppliers. But the FDI technology spilloversabsorptive capability (FTAC) of host country is very important in the system of FDItechnology spillovers. Then the author refers to do some researches on FDItechnology spillovers from the prospective of FTAC of host country.Then the essay introduces FTAC and the connotation of FTAC. The essaydiscusses the effects of FTAC on FDI technology spillovers from the prospective ofhuman capital ,R&D and the expansion technology absorptive capability(such asinfrastructure construction, money market efficiency, government policy, economiccal degree of openness, intellectual property rights and so on).The research shows themost indexes of FTAC is positive. In order to enhance Chinese FTAC, China shouldthink much of building modernized infrastructure. The empirical results reveal thatthe increase of investment in R&D, Chinese FTAC is enhanced distinctly. So whenChinese government draws the policy of R&D, she should go for the balance ofself-innovation and technology absorptive, the balance of theory research andapplication research. It very important for China to increase investment of educationenhances structure of human capital, encourage the employee of MNCs flow to localfirm or carve out. Financial market enhances FTAC by giving the innovation andimitation financial support. So the author advises China should deepen financialreform, loosen financial restrict, open financial serve market, reduce governmentinterfere. Chinese IPR strategy should keep up with international regulation, andrationally exert IPR strategy in the frame of TRIPS, should be propitious to incentivethe innovation activities. Moderate opening and orderly competition are the twoaspects of good market environment for FTAC enhance. Economy opening shouldkeep to the principle of Moderate opening, and balance the opening growth effectbetween short-term output and long-term, and confirm an appropriate opening level.