The Empirical Study Of Opening Up To Promote Independent Innovation In China

In the economic globalization and trade and investment integration process, the relationship among international trade, FDI and information technology is closer and closer, the technology diffusion from international trade and FDI has greatly facilitated the communication and innovation of new technology, FDI and international trade have become essential approaches for developing countries to achieve advance technology and promote self-innovation, and to demonstrate their late-developing advantage.Firstly, this paper theoretically analyzes how the open economy affect the innovation. This article will focus on two main mechanism of international technology transfer-foreign direct investment and international trade on technological innovation, in which direct foreign investment has a spillover effect on host country's technological innovation through the competitive effect, demonstration effect, correlation effects and mobility effects. The import and export trade will affect a country's technological innovation through different channels. With the deepening of economic globalization, the impact of opening up level on a country's or a region's technological innovation will be increasingly deepening.Secondly, this paper quantitatively analyzes the effect of opening level on China's technological innovation by using panel data which includes 30 provinces and cities from 1998 to 2007. The regression results show that the trade openness has significant positive spillover effect on the total patent applications, especially on innovation patent; the spillover effect of FDI will take effect only through the combination with human capital. Further study reveals that this effect has remarkably regional characteristics:the technological spillover effect via trade is strongest only in the middle of China, the effect of FDI also has to through with human capital be in effect.Thirdly, this paper gives several practical suggestions about improving the ability of independent innovation in China, including taking advantage of international technology transfer modes comprehensively, further exploring the potential of independent innovation; bringing the regional comparative advantage into play and carrying out the featured innovation; increasing absorption capacity, deepening the combination of production, education & research; strengthening the enterprise dominant position, improving the enterprise R&D capability; creating the innovation ideas, improving the innovation incentive mechanism.Finally, draws the conclusion after combining the results of qualitative and quantitative analysis, further elaborating to achieve the path of independent innovation in an open economy, and proposing countermeasures on the basis of experienced results for different regions.