The Technology Spillovers Of FDI And Absorptive Ability In China's Industry

Ever since 1950s～1990s, in order to attract foreign direct investment (FDI) ,a large amount of preferential policies were offered for its bringing beneficial in all over the world, particularly in those developing countries. Therefore, technology spillovers effect of FDI was getting highlighted and more and more related researches comes into being.How better use foreign capital, how fully absorb the vanguard technology which the foreign capital brings, has been influencing the development of the economy. This article studies the absorbency of foreign capital technology spillovers, discovers the influencing factor, puts forward proposal.This article first reviews the relative researches, summarizes the channel of technological spillovers: demonstration - imitation effect, competition effect, linkage effect, training - flow effect. And also summarizes the factors influencing the absorbency of technological spillovers from the angle of foreign enterprises, host country and technology gap at the same time.Second, analyzes the affect of human resource, technology level, degree of economical openness and market competition on the absorbency of technological spillovers of our country. It is concluded that there some evidence of positive impact of foreign firm's presence on domestic firms based on the industry data. The paper as well finds the influencing factors of technology spillovers. It can thus draw a safe conclusion that opportune technology gap and rich human resource put forward the technical spillovers absorption, but the capital concentration degree does not favor the technical spillovers absorption.Finally aims at the influence of technological spillovers, puts forward the proposal.