Effects Of Foreign Presence And The Entry Speed On Innovation Performance Of Domestic Enterprises In China

Using the panel data of131250Chinese manufacturing enterprises from2001to2007, we examined the effects of foreign presence and the entry speed of foreign enterprises on the innovation of manufacturing enterprises in China. The empirical results show that,(1) The entry speed of both Hong Kong, Macao and Taiwan foreign enterprises and western countries foreign enterprises plays a significantly negative role on the performance of domestic enterprises innovation; Hong Kong, Macao and Taiwan foreign presence has a significantly negative influence on the performance of domestic enterprises innovation, while the western foreign presence has a positive influence on the performance of domestic enterprises innovation.(2) The entry speed of western countries foreign enterprises plays a positive regulatory role on the relationship between the western foreign presence and the innovation performance of domestic enterprises, while the entry speed of Hong Kong, Macao and Taiwan foreign enterprises plays a negative regulatory role on the relationship between the foreign presence and the innovation perfomiance of domestic enterprises.(3) The influence of entry speed of Western countries’ foreign enterprises on the higher technology industry and absorbing ability enterprises’ innovation activities is greater than the low ones; The higher the degree of marketization of the region, the bigger the influence of entry speed of western countries’ enterprises on the domestic enterprise innovation positive influence, and in low marketization area, the influence of entry speed of Hong Kong, Macao and Taiwan enterprises on the domestic enterprise innovation performance is positive; the regulatory roles of industry technology opportunities and absorption ability is insignificant to the relationship of the entry speed of Hong Kong, Macao and Taiwan capital enterprises and domestic enterprise innovation performance.