FDI Technology Spillover Effect And The Capacity Of Independent Innovation In Shanxi

The intention of late-developing countries (regions) to introduce advanced FDI technology is to achieve regional technological progress and enhance the capacity of independent innovation by means of FDI technology spillover effect. But FDI technology spillover effect is not spontaneously occurring, it will be affected by a variety of factors. And the absorption capacity is one of the key factors, which exists obvious threshold effect. However, as a typical inland resource-based province, resource-based industry has become a burden of restricting economic development of Shan’xi. Economic transformation and industrial upgrade is imminent. Considering that independent R&D has several characteristics, including big investment, high-risk and long cycle, so, currently, in order to achieve short-term technical leap, rational choice is still that Shan’xi can efficiently absorb FDI technology spillover effect. In recent years, although the size of the actual use of FDI showed a rapid growth trend, there are still a large gapbetween Shan’xi and the eastern region. In view of the long-termpractice of the use of FDI in the eastern region, this paper willscreen out primary and secondary factors though comparativeanalysis and explore the smooth conduction interaction pathbetween FDI technology spillover effects and the capacity ofindependent innovation in Shan’xi.Firstly, based on sorting out the relevant literature on domesticand foreign, this paper will take "government-industry-university-research institutions" as the micro body, take industrialagglomeration, University City and Science and Technology Park asthe meso body and take FDI technology spillover effect, theabsorption capacity and independent innovation as macro body. Inaddition, this paper will construct hierarchically the interactionframework between FDI technology spillover effect and the regionalindependent innovation capacity, which will be based on differentintermediary. Furthermore, based on the typical characteristics ofShan’xi, we will comprehensively build “micro-meso-macro” viewthree-dimensional theoretical framework which is suitable forresource-based regions.Secondly, based on the before-mentioned comprehensivetheoretical framework, this paper will build the model and substantial and contrastive analysis on the roles and impact factorsof FDI technology spillover effect and the regional absorptioncapacity between Shan’xi and three eastern provinces (Jiangsu,Liaoning, Hebei). Moreover, taking Shan’xi province as focal point,this paper will explore the effect extent of FDI technology spillovereffect on the capacity of independent innovation and verify theconduction medium of the absorption capacity and mutually causallink among the three.Then, based on theoretical and empirical analysis, we draw thefollowing conclusions. First, each province exists significant FDItechnology spillover effect directly, but Shan’xi is significantlyweaker than the eastern provinces, which will be attributed to threemain factors, including the degree of opening, agglomeration ofscientific research and market structure. Second, each provincehas some degree of the absorption capacity. Education, researchand government make an obviously basic supporting role in Shan’xi,however, the root cause of the gap between Shan’xi and the easternregion lies in low and uneven levels of development of theabsorption capacity factors. Third, the capacity of independentinnovation was not promoted by FDI technology spillover effect inShan’xi. There is no positive interaction relationship between eachother. The key crux is that the absorption capacity is unable to undertake a role of conduction medium.Finally, for the eastern coastal provinces, inland regions,resource-based regions and Shan’xi, this paper will drawappropriate policy implications so that each region can efficientlyuse and absorb FDI technology spillover effect and achieve positiveinteraction conduction between FDI technology spillover effect andthe capacity of independent innovation.