Analysis On The Impact Factors Of China’s Area Industrial Innovation

Science and technology are the primary force. China must develop its science andtechnology if it wants to be a moderately developed country in the mid-21st century.Furthermore, if China wants to promote its development on science and technology, the keypoint is to improve the innovative ability. Hence, enhancing innovative ability as well asbuilding an innovation-oriented country has been National Strategy of China. In the openeconomy, it is seen that one country’s improvement of innovative outputs capability is basedon endogenous innovation, utilization and recreation of exogenous innovation. Theendogenous innovation includes input-output effects on R&D expenditures. The utilizationand recreation of exogenous innovation mainly includes foreign direct investment andtechnology import. In this paper, it mainly analyzes the influence on innovative outputs inChina by R&D, technology import and foreign direct investment.Based on panel data from China’s24provinces the years of2003-2010as the sample, toestablish the analytical framework of the inter-provincial innovation output of large andmedium-sized industrial enterprises influencing factors. The results show that only the R&Dinvestment always have a significant positive effect on innovation output; and foreign directinvestment and the introduction of technology funds are negatively correlated, but there areregional differences; domestic purchasing technology expenditures on innovation output hasno effect. The above results further show that, in developing countries, although byintroducing technology and foreign direct investment, can effectively overcome sometechnical bottlenecks, and can provide opportunity of technical catch up and economic catchup, But only increased R&D input is improving our country enterprise technology innovationability’s key factors and the most direct route.