| Since the reform and opening up, especially since China joined the WTO in2001,China’s foreign direct investment becomes faster, FDI stock is growing. FDI, simply cannot meet the needs of our country to foreign investors. Introduction of FDI capital, to seethe effect of FDI on China’s technological innovation capability influence the FDI asaccess to advanced technology and management systems channel. As for FDI technologyspillover is dependent on the degree of development of financial markets, research FDI,financial development on China’s independent innovation capability of impact, whichfurther attract foreign investment to China, improve and make full use of foreign capital,and promote the development of the financial market deepening has an important guidingsignificance.Article analytic theory of FDI development and financial market development theory,and the use of static and dynamic panel model panel model combined mode, trying toexplain the following questions: First, FDI, financial market development and cross termsof both how it affects the ability of independent innovation in China and affect the way ormanner? The second is from empirical tests and analysis of national and three regional FDI,financial development on the actual impact of innovation capacity effect; three provincesto test FDI, financial market development paired regional independent innovationcapability? Calculation of financial development on FDI technological innovationoverflow threshold test whether municipalities across the threshold?By analyzing FDI theories, analytical FDI on technological innovation capabilityspillover effects. There are two main aspects: First, a positive role in promoting foreigndirect investment, mainly through competition, imitation effects associated impact, trainingpathways and five ways to promote positive feedback mechanism of raising the level ofindependent innovation; two are negative inhibition, Foreign direct investment throughtechnology transfer within the hysteresis effect, FDI enterprises to implement R&Ddivision of labor, control the core technology transfer to China and other ways todiscourage FDI spillovers.The article also analyzes the ES Shaw and Ronald McKinnon’s theory of financialdevelopment, streamline the degree of financial market development pathway forindependent innovation, development of financial markets affect FDI inflows, FDI overflow channels and affect the transmission mechanism.Financial enterprises byproviding financing facilities, optimize business activities, providing informationconsulting, operational risks and other services to facilitate the introduction of FDI.Through technological innovation (demonstration effect, competition effect and IndustrialRelations), technology accumulation (accumulation of human capital, domestic enterprisesR&D investment) affect FDI overflow transmission mechanism. Therefore, the hostcountry for technical innovation and technology accumulation, innovation activities inorder to achieve increased levels of development and innovation.Empirical foreign direct investment, financial development, the relationship betweeninnovation, articles adopted in1997-2010the country’s30provinces, municipalities, data,according to the different stages of development of financial markets, through the staticand dynamic models GLS model GMM, from national, regional and provincial levels fordata regression. Concluded: Nationwide, FDI significantly enhance the level of China’sindependent innovation, the degree of development of financial markets is hindered thedevelopment of China’s innovation capability. From the perspective of the three regions,FDI promotes innovation was the development of the three regions. Raise the level offinancial market development of the eastern region to promote FDI Technology SpilloverMidwest inefficiencies in the financial markets, the impact on the performance of regionalinnovation capability is negative impediment. As for the inter-provincial level, as of2010,a total of Beijing, Tianjin, Shanghai, Zhejiang, Jiangsu, Guangdong, Shandong, Chongqingeight provinces across the trigger forward technological innovation FDI spilloversthreshold level of financial development.Finally, this paper describes the theory and empirical test results, the relevant policyrecommendations, we should vigorously develop the capital market, improve financialproducts for high-tech SMEs financing; improve financial institutions’ risk control level,the development of third-party guarantees loans increased support for innovation activitiesand financing services; improve financial market system, improve the efficiency offinancial markets; while continuing to develop the eastern region, deepening reform,increase policy support to central and western regions and accelerate the construction ofthe central and western regions, the implementation of the central and western talenttraining program, thus contributing to improve the level of innovation in the Midwest. |
