The Open Economy Spillover Effects On Patent Innovation: An Empirical Study From Guangdong Province

Under the background of reform and opening up, The economic development of Guangdong province is mainly due to developing the exported-oriented economy by vigorously developing foreign trade and introducing foreign direct investment. Under the 30-year's open economy, the foreign trade and foreign trade investment play a very important role in promoting the economic growth, employment and market system construction. The economic development can't do without the healthy development of the foreign trade and FDI. Currently, the main aim of developing foreign trade and introducing FDI is to improve the level of independent innovation.In this paper, we analyze the difference of the spillover effect from foreign trade and FDI under a knowledge production model, utilizing the panel data methods with the economic data of 39 industries in Guangdong province. The results show that the direct effect from FDI is negative, the effect of funded department depends on the level of the competition. For the industries with full competition, the effect is positive. Otherwise, the direct effect is negative, such as petrochemical rubber industry and mineral processing. For the collective enterprises, the effect from the funded department is positive. But the spillover effect from FDI depends on whether the industry is suit for learning by doing, for the industry that is easy to produce learning by doing, the spillover effect from FDI is positive. Otherwise, the competitive effect will exceed the spillover effect, and the net effect will be negative. And the spillover effect from FDI is different to different ownership enterprise, that is, the effect is negative to the state-owned enterprises, positive to the collective enterprises. The effect from export has a relationship with the ownership of the enterprise and the product technical content, the effect to the state-owned enterprise exceeds the effect to the collective enterprise. For the industry with high technical content, such as electrical and electronic industry, the crowding-in effect is remarkable. While, like machinery and equipment industry, the effect is not obvious, even negative. The effect from learning by doing is different to different ownership enterprises. The state-owned enterprises benefit more from the learning by doing effect, and the effect is very obvious to the hi-tech industry, electrical and electronic industry. In the end, in order to give a full play of the crowding-in effect from the foreign trade and FDI, we should speed up the restructuring of state-owned enterprises, introduce the competition mechanism, enforce the cooperation between foreign business and domestic-funded enterprise within same industries, increase the investment in R&D and pay more attention to the leading enterprises.