Study On The Effects Of Technology Spillover Of Fdi On The Food Industry Of China

As the basic industry for people's livelihood, the food industry is one of industries that the utilization of foreign capital is opening earlier and higher levels, especially foreign company strengthen the investment and M & A in food industry in recent years. Using of foreign capital to improve the technological level of domestic enterprises is our main purposes of the government policy on foreign investment, and foreign technology spillovers is one of important ways to improve the technological level of China's enterprises. Therefore, Study on the effects of technology spillover of FDI on the food industry of China will be a certain significance that how our government and enterprises should be better using of foreign capital on China's food industry.Taking the basis of previous studies, this paper analysis the development of the food industry in China over the past decade, and points out that the foreign investment of China's food industry has the following characteristics:expanding, deepening trend of M&A, the uneven distribution of the foreign investment, and the increasingly active of cross-border R&D investments. In theory, the author summarizes and constructs the mechanism of the effects of technology spillover of FDI on the food industry of China, which from technology spillover sources, overflowing channels, the capacity of technology absorptive, and the effects of feedback and regulation, respectively. Secondly, with the establishment of econometric model, this paper has the empirical test that FDI and cross-border R&D investment respectively affect the total output capacity and independent innovation of the food industry. Then the paper take in-depth empirical analysis about the effect of independent innovation from the role of scientific research and development institutions, foreign and domestic enterprises of the scientific research strength in China's food industry.Evidence shows that, with the increasing of the marketing share of foreign-funded enterprises, it generate positive spillover effects on the total output of China's food industry, but not significantly promote the independent innovation of the China's domestic-owned food enterprises. Foreign-funded R&D investment has a significantly contribute to the total output and the growth of independent innovation ability of the China's food industry. The reasons of differences are maybe the diffractions between the foreign R&D and FDI in the capital form, innovative channels and human capital levels and other factors. Secondly,with the econometric model about the effect of independent innovation from different kinds of research institutions, the author obtain conclusion that the main reason of the differences in innovation between the research institutes and enterprises of China's food industry maybe the marketing operation of scientific research institutions. The scientific research institutions of domestic enterprises become the main food main part of China's food industry innovation under the dual role of external forces.This study suggests that the use of foreign capital from our government and enterprises exist many deficiencies, such as, foreign R&D institutions does not match the status of foreign markets, the lack of learning, absorption and digestion in domestic enterprises, the commercialization of scientific research institutes is low and the lack of proper investment guidance from the government. China's government and enterprises should adjust appropriate strategies to attract investment, and create a favorable environment for independent innovation, with improving digestion, absorption and innovation capacity of China's enterprises. Then we can increase spillover effects from foreign investment in independent innovation of China's food industry.