FDI Between China And The United Empirical Studies Of Technology Spillovers

Along with economic globalization, China's accession to the WTO, FDI in Chinahas increased year by year, FDI in a larger extent, to upgrade the technical level ofChina, and China to narrow the technology gap between developed countries.China'seconomic development level, overall national strength and technology level haverapidly improved. Our country's economic strength ensures its position in the world.But China's technology strength is not correspond with China's position in the worldand the technology level of China is still relatively low, Therefore, our countryformulated the "Exchange Technology with Market" policy and implemented a seriesof measures to attract foreign investors. The entering of the foreign direct investment(FDI), not only eased the capital shortage situation in China's economic take-off stage,but also upgraded China's technical level in a great extent and reduced the technologygap between China and the developed countries.FDI can be channel and carrier for technology diffusion. The technologyspillover effects of FDI can be expressed in its pre-and post-associated effects, humancapital flows effects, market competition effects, and the local manufacturers'imitation effects. Through the above methods, foreign direct investment has a positiveeffect in improving China's overall technological level.There were many articles researching the relationship between FDI andtechnology diffusion at home and abroad and there were many articles researching thetechnology spillover effect of foreign direct investment in China's too. Referring tothe research at home and abroad, using the patent authorization data between theSino-US companies in 2005, this paper analyses the technology diffusion effect of theFDI on our country and quantizes this effect in some extent.First of all, this paper analyses the current economic situation of China'sdevelopment generally and describes the writing motivation, background andobjectives, methodology and innovation , Then, this paper describes the articlesresearching FDI and technology diffusion from two aspects: empirical and theoretical. In the Literature Review part, the paper analyses the theoretical basis, channelsand the effect factors of FDI's technology diffusion effect. Then, a brief description ofthe situation about mutual investment and technology authorized between China andAmerica was given. In the same time, the paper analyses the features of America'sinvestment in China; After preparing the basic materials, this paper divides theSino-US companies into with FDI company group and non-FDI company group andanalyses the channels for the two group obtaining patents respectively. Then, thepaper gives the data resources and collection methods and gives some model sets andthe foundationsOn this base, the paper executes the empirical analysis to test the role of China'sinvestment in the process of patents transferring from American companies to Chinesecompanies, and also tests the role of American's FDI in the process of patentstransferring from Chinese companies to American companies. The final empirical testresults show us that not only China's investment, but also American's FDI, plays animportant role in the progress of patents transferring. With FDI company group havegreater advantage in obtaining patents.Finally, the MNCs executed many measures in maintaining its core technology,coupling with the imperfect market environment and the lack of absorption capacityof Chinese companies which all implemented the technology diffusion effects of FDIin our country in a certain extent.So, we should deepen this kind of research to enhance and further promote thetechnology diffusion effect of FDI to pull the upgrading of China's technology level.