Research On The Impact To Technological Innovation By Foreign Direct Investment In Wuhan

Innovation is an eternal theme of human survival and development, China should regard innovation as a top priority, to establish an innovation-oriented country. In the context of economic globalization, in order to assess the substantive impact of FDI on the host country, we should stay its role in technological innovation on the host country. So the paper targets Wuhan City which have higher economic development and more FDI in the middle area of China to study the impact of FDI on technology innovation in Wuhan City.First, the paper reviews the theory and empirical research literatures about the 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 on the basis of analysis on the development of FDI and the technological innovation input and output in Wuhan City, the Paper focuses on the Wuhan City, and test the impact on technological innovation . At last it puts forward relative suggestion.On the basis of the mechanism that FDI has a positive impact on technical innovation in the host country, it educes that FDI have a significant positive impact on Wuhan technical innovation output, which is based on new products. However, FDI do not have a significant impact on Wuhan technical innovation output, which is based on patents. After the light of these conclusions, we conclude that Wuhan 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.