FDI Spillovers Under Tht Background Of Industry Cluster

Foreign direct investment (FDI) has an increasing impact on the development of the host country, and its most important role is technology spillovers, which is the main way to raise the technology level of the developing countries. At the same time, the competitiveness and economical impact of industrial clusters have been paid close attention to. Some countries have already strengthen the industrial cluster effect as so-called "The third generation of investment promotion policies".Both theoretical and empirical analyses are involved. In this study, the technology spillovers is divided into intra-industry and inter-industry spillovers, and is discussed about the transmission mechanism and influencing factors respectively, with the combination of the industrial cluster theory. Based on the theoretical analysis, the empirical analysis uses panel data of14manufacturing industries in Zhejiang Province, and gives following conclusions:(1) Industrial cluster slightly inhibits the intra-industry spillovers effect but notably promotes the inter-industry spillovers effect, mainly through the backward spillovers;(2) Industrial cluster promotes the FDI intra-industry spillovers effect through its high-quality human recourse and high-tech level formed by specialization.(3) The overmuch number of firms in the industrial cluster causes excessive competition, leading to the "Crowding Out Effect" to the domestic enterprises and the "Crowding Effect" of the resources, which finally results in the negative intra-industry spillovers effect.Based on the analysis, the author gives following suggestions from the perspective of strengthening the construction of industrial clusters in order to promote FDI technology spillovers:(1) Strengthen the policy guidance, promote the development of industrial clusters;(2) Develop supporting industries, strengthen the industrial correlation effects;(3) Train and introduce the talents, improve the quality of human recourse;(4) Increase the R&D input, improve the technology level;(5) Develop service institution, facilitate the effective spread of technology.