The Influence Of FDI Oil China’s Area Independent Innovation Ability

From the later1990s, China has become the country which attracts the most foreign direct investment among developing countries in Asia. By the end of2012, the flows of China’s FDI reached$127billion, ranking second in the world. However, along with the intense competition in the international trade market, low level of technology value-added processing trade has been unable to adapt to the needs of the international trade market. How to improve the capability of regional independent innovation capability, promote the optimization and upgrading of industrial structure, transform economic growth mode has become the urgent problem..This paper aimed to explore in depth the mechanism of FDI on regional innovation capability from the perspective of empirical. According to the "development threshold" effect, FDI can enhance the independent innovation of an area under certain conditions. In order to make the research results more representative, the author chose the Long Triangle Area as the research object, which attracts the most FDI and has favorable economic environment and perfect infrastructure development.The framework of this research consists of six parts. Chapter1was introduction, briefly introduced the research background and significance, research content and methods. Chapter2was literature review, this part described study achievements on foreign direct investment, technology spillovers in the world. Chapter3analyzed the mechanism of FDI’s promotion of innovative, this part elaborated from three sides which include mechanisms of action, independent innovation capability measurement model and impact factors. Chapter IV comparatively analyzed the status quo of the FDI and the ability of independent innovation of the Long Triangle Area Chapter V was empirical test, this part selected the panel data of the Long Triangle Area in10years and used two different main explanatory variables to do the empirical test and did linear regression analysis one by one for the whole Long triangle area. Chapter VI was conclusions and policy recommendations, the author put forward policy recommendations based on the empirical results.Through the analysis of mechanism, status quo and empirical research, this paper obtained the following conclusions:The interaction of FDI and human capital can promote the regional independent innovation ability. The GDP and internal R&D expenditures of an area had positive correlation with independent innovation ability. Number of people in scientific and technological activities of an area of had a significant inhibitory effect on regional independent innovation capability. The reason of the different relationships between FDI and the independent innovation capability in Jiangsu, Zhejiang and Shanghai was that the models of economic development in the Long Triangle Area were different.