Analysis Of Influencing Factors Of Absorptive Capability Of Technology Spillover Of Zhejiang’s FDI

As the economic globalization and the,the international division of labor hasbecome more and more apparent,the economic connection between the countries hasbecause more and more frequent,foreign direct investment has developed rapidly, asurprising number of large multinational companies has come to foreigncountries,hoping to seek new chance to invest.When multinational companiesinvested in foreign countries,it usually developed better than local companies becauseof its advanced technology and management style,but with the passing oftime,spillover effects started to appear inevitably, improving the local enterprise’stechnical level, therefore multinational companies have become an important forcewhich can affect the world economic development and technological progress, so a lotof countries and regions have established various preferential policies to attractforeign investment.Since Chinese reform and opening up, the investment environment has improvedgradually, especially after carrying out the "market for technology" strategy, the scaleand quality of foreign investment have maintained a high growth for many years.Among the countries that attached foreign investment, China has stayed in the firstplace for many years. But we found that foreign companies in China has got largemarket share,and high profit so far, and even some foreign multinational companieshave controlled some industries in our country, at the same time, many domesticenterprises’ ability of innovation still keep a low level.Zhejiang is located in the southeast coastland of China and the important part ofthe Yangtze river delta, is also one of the most active areas of the private economy inChina.Zhejiang has improved the investment environment actively and played toregional advantages as a result of the good location and economic environent.What’smore Zhejiang has always insisted on the strategy of attracting foreign investmentover the years and attracted a large number of foreign investment and built up tradecontacts with a lot of countries.But how did the technology spillover develop andwhat were the factors which affected the technology spillover?The research on it was rare.Based on the influencing factors of absorptive capability,this article introducesFDI technology spillovers,absorptive capacity and related concepts firstly, and thenselect the factors,establishes an empirical model combined with the appropriate dataof Zhejiang,at last draws relevant conclusions and recommendations.