Backward Linkage Of Fdi And Local Enterprises’ Innovation Capability

How to improve the ability of independent innovation and to build an innovative country have risen to national strategy of our country.With the arrival of the third round economic restructuring and implementation of overall innovation strategy, how to enhance the independent innovation capability of domestic enterprises has attracted more and more attention.The improvement of technology innovation ability mainly depends on the endogenous innovation and absorption of exogenous technology innovation.As an important driver of the globalization of science and technology,FDI has a fundamental role in the formation of importer technology innovation ability. Zhejiang is one of the provinces started using foreign capital earlier, FDI in Zhejiang in recent years has ranked the top few both in size and incremental quantity. Therefore, the research on whether FDI can become source of domestic enterprises’ technical innovation and how to use FDI to improve independent innovation ability of domestic enterprises has important strategic significance.At present, scholars both at home and abroad studied spillover effects of FDI from the view point of region and industry, and mainly concentrated in impact on host country’s labor productivity and total factor productivity. There is a lack of research on the intra-industry technology spillovers from FDI, especially from provincial level, Based on related theory of spillover effects of FDI and the technological innovation theory, we select Zhejiang province as the research object, and analysis what is the effect of backward technology spillovers from FDI to enterprises’technological innovation ability in Zhejiang province, then what factors affect the process of overflow.Firstly, this paper had a descriptive statistical analysis in development of FDI and input and output of technology innovation in Zhejiang. Then we have an overall understanding of FDI and technology innovation in Zhejiang and lay the foundation of in-depth empirical analysis later.Secondly, it uses the data of34industries of Zhejiang in2007-2011, to prove the existence of backward linkages spillover to innovation. In the model, it builds three variables to explain the spillover effects, including horizontal spillover, backward vertical spillover and forward vertical spillover variable. The direct consumption coefficient and direct distribution coefficient.in the input-output table have been used to account for backward vertical spillover and forward vertical spillover variable. After use of measuring software regression the results support the existence of backward linkages spillover to innovation in Zhejiang.Finally, it selects three variables:technology gap, market orientation of FDI and human capital, through two ways:building interaction variables and packet tests to examined the effect factors of backward linkage spillover to innovation.The results show that technical gap and market orientation of FDI have negative influence on backward linkages of FDI to innovation significantly in Zhejiang; After human capital has positive effect on backward linkages of FDI to innovation in Zhejiang significantly.