Foreign Direct Investment And High-tech Industry Cluster Interaction Mechanism

With the continuous deepening of economic globalization, the activities of multinational corporations on a global scale make the international direct investment more frequent and intense. Foreign Direct Investment plays an growing role on the economic development of countries, especially that of developing countries. It not only can make up a country's shortage of funds, improve the level of production technology, but also promote the adjustment of industrial structure and enhance the international competitiveness of industries. Since the reform and opening-up of China, the numerous foreign capital inflows into our country greatly promoted its economic development. At the same time, industry clusters spring up in the world like bamboo shoots after a rain. The Silicon Valley in the United States, software industry of Bangalore in India and the Italian ceramic tile industry are well-known cases. The great contributions of Industrial clusters to national economic development are obvious, therefore developing industry clusters, especially high-tech industrial clusters is perceived by every country as a priority of economic development strategy. Along with the promotion of reform and economic development, the phenomenon of high-tech industry clusters have become important content of China's economic development.In fact, China's high-tech industry clusters have become an important factor that attracts foreign direct investment. The knowledge spillover effects, huge economies of scale and the effective elimination of information asymmetry of High-tech industry clusters make foreign companies gain a huge competitive advantage. While foreign direct investment enterprises (especially multinational corporations) establish a bridge between the cluster region and the outside world through its own global network of organizations, and provide endogenous R&D support and motivation to the collaborative and network-based business ecosystem within the industrial cluster.There are numerous researches on the two issues, but by looking up the relevant documents, we can find few researches on the relationship between FDI and High-tech industrial clusters, which is still in fragmentary state and starting stage. That provides a space for further study. Well, whether there is a mutually reinforcing interaction relationship between FDI and High-tech industrial Clusters? In this paper, through combination of standardized research and empirical studies, qualitative and quantitative analysis, the text reveals inner link of international and industrial cluster, expounds the related mechanism between them. Empirical analysis shows that: there is indeed interaction between foreign direct investments and industrial clusters. This gives us inspirations: developing industry clusters is a method to attract more FDI, FDI can also enhance the international competitiveness of industry clusters.