Fdi Role Of Independent Innovation

Indigenous innovation is confirmed as the national strategy since 2005; while FDI is performing an increasing important role with the trend of economic globalization. This paper is trying to analyze the impact of FDI on indigenous innovation. The current research is normally focused on the impact of FDI on technology improvement, but the impact on indigenous innovation is seldom concerned. This paper aims at stretching the impact on technology improvement to the impact on indigenous innovation and bridging the technology improvement and technology innovation. Firstly, analyze the impact of FDI on indigenous innovation through technologic channel. Then, analyze the impact through non-tech channel. Finally, provide the suggestion for government according to the analysis.The biggest shinning point of this paper is emphasis on the differences of technology improvement, technology capability and indigenous innovation. Based on the concept, this paper holds that FDI do not necessarily lead to indigenous innovation, and effective measure is a must.