Analysis On The Effects Of Technological Progress Of FDI On Our Country's SMEs

Since the beginning of reform and opening policy, China has attracted a lot of foreign direct investment (FDI), the large amount of FDI inflow into China cause the technological investment overflow to our country through many kinds of channels, then has become the important origin of our country's technological progress. In recent years, the function of small and medium-sized enterprises (SMEs) to the national economy was obvious, but what influences do the FDI have to our country's SMEs'technological progress? Are the affections remarkable? Therefore, the attitude of this paper is that how to view and evaluate the relationship between FDI and technological progress on our country's SMEs.This paper is mainly discussing the problem of FDI effect on our country's SMEs'technological progress. On the basis of reviewing some of the related theories , and unifying our country's SMEs'cases, then clarifies the mechanism of FDI effect the technology. In the concrete analysis of model and index, we are under the new growth theory frame firstly, using the time series data under the cointegration analysis, determines the influences of FDI to our country's SMEs', the whole industry enterprises of our country's and the SMEs in Jiangsu province's technological progress separately, and carries on the comparative analysis. Then using panel data to build the model under new growth theory frame, analyze the influences of FDI in different years in our country's SMEs comparatively. It comes out the conclusion that FDI has an active role to improve the technology progress of our country's SMEs, but the function is not as obvious as the whole industry enterprises'and the SMEs in Jiangsu province's. When analyzing the influences of FDI in different years in our country's SMEs, we find that from the year 2002 to 2003, FDI had obvious effect on the SMEs'technological progress, but the influences in the year 2005 were less and negative.These influences come from that the proportion of sole proprietorship and processing trade is surge; the input of technology is lower; the core technology is dominated and the SMEs itself exist some problems. Jiangsu owns the stronger SMEs, the quicker market advancement and the higher technology input lever. Therefore, the function of FDI is more. In the author's opinion, how can the state-owned SMEs imitate, study, assimilate the technology of production, the way of management, it all depends on the ability of assimilation of the enterprises. As a result, pay attention to the labor of good quality; lead FDI to add the investment proportion of technology intensive industry; form effective mechanism of competition and improve the SMEs'independent innovation ability are the keys to contribute to the technology spillover of FDI.