The Pushing Effect Of Independent R & D And FDI Upon China's High-Tech Industry

Since China has implemented the strategy of reform and opening-up, the high technology industry has developed rapidly and begun to take shape. It is more and more important in our national economy and has become an industry which can direct the development of our national economy. Besides, it plays a pivotal role on both China's industrial structure and adjustment of economic growth.In the meantime, many substantive problems exposed with the development of it. In this paper we apply the data from 1995 to 2009 with methods of time series analysis, logarithmic regression analysis and comparative analysis to determine the role of independent R&D, and actual use of FDI in the high technology industry. What's more, we raise the existing problems in the high technology industry by analyzing the numerical results and put forward some countermeasures.It is shown that the promotion of independent R&D and actual use of foreign direct investment on high-tech industry is very significant. The flexibility of FDI is more obvious than independent R&D but FDI fluctuates more severely; Independent R&D is a long-term, stable and promoting factor while contribution of FDI to the development of high technology industry is temporary in spite of its importance. In addition, the contribution and pulling rate of FDI on the development of high technology industry shows a decreasing trend. Therefore, from the stability perspective of national economic, China should not depend on foreign investment too much, but try our best to develop our own core technologies and participate in the trend of international technologies. Only in this way can we implement the strategy of "going global".