Analysis Of Regional Effect Of Foreign Direct Investment On Technology Innovation In China

With the accelerating pace of China's opening up, foreign direct investment continues to flood our country, the increasingly large scale.Foreign direct investment brings not only capital, more importantly, to bring advanced technology and scientific management experience and a series of elements.China is currently facing a balanced regional economic development, economic growth driven by technological innovation and new tasks.New starting point in the new century, how to use foreign capital to raise China's technological innovation capability is the focus of this paper.This paper reviewed the research of other scholars, based on the proposed focus of their research is to study foreign direct investment on China's inter-regional technological innovation capability.First, this study of foreign direct investment and technological innovation and foreign direct investment in technological innovation mechanism of a detailed theoretical analysis, followed by the establishment panel data model, select the quantitative indicators, substitute data, empirical results obtained.Specifically, this paper, the innovation process and product as a similar process, with the production function as the original model, the labor input and per capita income and other factors added to the model, with patent grants that technological innovations.This paper selects the 1999 to 2009 data, respectively, from the country, eastern, central and western regions doing different empirical test, the conclusion is: foreign direct investment on the national level and the eastern level had significant effects on patent licensing, onlyMidwest designs to some extent.Patent on the invention of the region are almost no significant effect.The eastern region again this time to do before and after the return of the dynamic measurement and found that the eastern region with the increase in the overall economic level, the improvement of infrastructure, this large gathering of foreign direct investment and enhance the absorption capacity of the region, but the inventionPatent role is still not significant.This empirical result is that foreign direct investment and joint action of the results of the internal environment.Since the rise of the overall economies of scale, enhance our natural ability to digest and absorb foreign capital.Combined effect of technological absorptive capacity and differentiation ability of the regional imbalance in the main technological innovation.The patent for why foreign investors do not have a significant impact, this article summarizes several reasons, on the one hand the multinational home countries do not want to transfer core technology, foreign investment enterprises through various strategies to curb technology spillovers, our absorption capacity is not strong andforeign investment to give the "crowding-out effect."Finally, three suggestions are given that the system to create a healthy environment, to follow the principle of local conditions to guide rational flows of foreign capital, take the road of independent innovation.