Empirical Analysis On The Spillover Effect, Spillover Path And Effect Factors Of Fdi On Innovation Of Host Enterprises

Nowadays with the rapid development of science and technology, innovation is the driving force of science and technology, and which plays a crucial role on the substantial development of economy. Under the closed economy, one country's improvement of technology is mainly from oneself innovation, but with the development of globalization and openness of economy, a country's innovation may not only relay on domestic innovation, esepecially for the less-developing and developing countries whose R&D abilities are weak and are less initiative on innovation. So they can improve their technology level by foreign direct investment as a external driving force. FDI can not only bring domestic country the cash they need but also the advanced technology, management skills and marking concept. As a result, FDI is regarded as an important role for developing countries to improve their innovation abilities.This paper regards Shandong province as a subject, assessing the spillover effect of FDI in shandong province, and the path on which the effect happened.This paper's main conclusions are:first, FDI don't have obvious effects, but the different countries of origin have different conclusions, the FDI from Hong Kong, Macao and Taiwan business-funded enterprises in shandong province has the positive spillover effects of innovation, but Japan, South Korea, Europe and the United States and other enterprises of the spillover effect is negative, while when taking into account the absorption of FDI in Shandong Province in recent years, a policy change is that the future of the spillover effect of FDI on innovation has taken a turn positive trend.Second, Shandong Province, competition-innovation path have complicated effects, while the imitation-path is the main way to promote FDI spillover; training-the path of innovation and industrial linkage effects simply do not happen obviously.The government and enterprises should let the domestic enterprises enhance their innovation capacity, the government should formulate policies related to FDI, enhance a modest expansion of economic openness, build platform to share knowledge, strengthen IPR protection and establish a sound market mechanism to promote fair competition; enterprises should absorb innovative mechanisms which established to accelerate the transformation of technology to products and advanced digestion and absorption of imported technology and equipment, take the initiative to improve the capability of independent innovation, to promote FDI occurs at a higher level to create conditions for spillover effects.