An Empirical Research On The Impact Of FDI On The Ability Of Independent Innovation Of Jiangsu Province

Since the reform and opening up, foreign direct investment has been playing an important role in the economic development of Jiangsu Province. Especially in recent years, foreign direct investment played a significant role in Jiangsu's technological progress and economic transition process. With more and more people put their interest on innovation, the relationship between FDI and the ability of independent innovation draws a lot of academia's attention in the field of international direct investment. The theory of innovation is not mature compared to the foreign direct investment theory, the ability of independent innovation's definition, measurement, mechanism and other related theories has not yet been accepted conclusions in academic community. Found from experience, FDI will promote and facilitate regional independent innovation capability, but sometimes it will also inhibit the development of independent innovation capacity. Then, is foreign direct investment the driving force of Jiangsu Province, or inhibit the ability of independent innovation capability? Centering on this issue, we studied the influence and mechanism of FDI on the ability of independent innovation of Jiangsu province.In this paper, we use a combination of theoretical and empirical method. First, we review the status of domestic and foreign research, put forward ideas of this research and research methods, and analyze the current status of FDI and independent innovation capability in Jiangsu province. Secondly, quantitatively study the equilibrium relationship between FDI and Jiangsu's ability of independent innovation according to the research derived from the ability of independent innovation indicators, and examine their causal relationship through co-integration test and Granger causality test. The results show that:Foreign direct investment in Jiangsu Province and Jiangsu Province's comprehensive measure of the ability of independent innovation index exists a two-way Granger causality relationship; Jiangsu Foreign direct investment is not Granger cause the Jiangsu innovation environment index, Jiangsu innovation environment index is not Granger cause foreign direct investment; Jiangsu foreign direct investment Granger causes the Jiangsu cluster environment, Jiangsu cluster environment is not Granger cause foreign direct investment in Jiangsu Province; the relationship between foreign direct investment in Jiangsu Province and Jiangsu connectivity is a bidirectional Granger causality relationship. Finally, based on the overall conclusions of this article, we proposal five policy including promote the independent innovation capacity under open conditions, further increase corporate support for research cooperation, promote the development of industrial clusters and the international gathering of innovative resources, strengthen intellectual property protection, perfecting the conduction mechanism between FDI and independent innovation ability development in Jiangsu province.