Research On The Influence Of Vertical Specialization And FDI On Local Innovation Capability

Along with the globalization of economy,division of work,especially the industry vertical specialization has very important effect on the industrial structure evolution,on this back-ground,FDI brings technological overflow effect the ascension of our enterprise innovation ability,become the important component of our conntry enterprise innovation strategy. Although there are a lot of existing literature study on this situation,but rarely research industry vertical specialization of enterprises in our country through FDI to raise their innovation ability of the influence.According to the above situation,this study in the perspective of technology spillov-ers,measure vertical specialization index through the input-output table,by use of 1997 years,and 2002 years,and 2007 years in 20 industry panel data of positive analysis,this paper tries to analyze the vertical specialization and the influence of FDI to Chinese enterprise con-struct the independent innovation ability,the research result indicates that:First of all,deepening of vertical specialization degree promoted our local enterprise inde-pendent innovation ability enhancement. The higher the degree of vertical specialization, the innovation ability of our country enterprise is higher.Secondly,in the short term,we can not conclude the influence of FDI to local enterprise innovation capability is positive or negative effect,but in the long run,FDI Promote innovation ability of the local ascension in Chinese enterprise.Finally,through the study of vertical specialization and FDI interaction,we found that the vertical specialization and FDI in the ascension of loacal business innovation ability can be complementry to each other,that is,the higher the degree of vertical specialization,when FDI increase,the innovation ability of our country enterprise is higher;Higher levels of FDI,vertical specialization degree rise.and the more beneficial to China enterprise innovation ability en-hancement.Through the above analysis,our research from the overall affirmation that the FDI tech-nology spillovers and participate in the vertical spcialization play a positive role in the innova-tion of local enterprise.and prove that the they are complementary to promote domestic innova-tion.Finally the paper analyses the cause of the obve conclusions reason and gives the counter-measures and proposals.