The Study Of Difference Of Independent Innovation Ability Influenced By FDI In Industries

Accelerating the development of the ability of independent innovation and speeding up the construction of innovative country, are always the goals of China’s government in recent years. Under the trend of economic globalization, the improvement of independent innovation in a country mainly depends on the endogenous innovation, the introduction of the foreign technology, absorption and re-innovation. Therefore, the improvement of independent innovation ability of the industry can not only relies on their own efforts, but also needs to actively introduce and absorb foreign investment technology in order to promote the development of their own independent innovation ability. The accession to the world trade organization makes more foreign investment into China’s market, foreign direct investment has become an important driving force to promote China’s economic development and independent innovation capability. How to introduce and utilize foreign capital more effectively, and how to introduce foreign policy are still important issues which need to be solved at present.At first, this paper analyzes background, mainly from two aspects: in theory, analyzing and summarizing the former research achievements, mainly includes the concept definition of independent innovation ability and foreign direct investment, literature review about the relationship between foreign direct investment and host country’s independent innovation capability, the theoretical analysis of foreign direct investment. In reality, the development status and characteristics of foreign direct investment in China are analyzed, including the development process, the characteristics of industry distribution, the way of investing and so on. Secondly, the relationship between foreign direct investment and host country’s independent innovation ability is discussed in the view of industry. This paper uses data from 2002-2014, referring to the "China Statistical Yearbook", "Science and Technology of China Statistical Yearbook" and other relevant Yearbook. The empirical model is constructed by using the production function of the Ke cloth-Douglas, and the linear regression analysis is carried out by using the Eviews statistical software. From the empirical results we can found: difference of independent innovation ability influenced by FDI among different industries; the difference of independent innovation ability influenced by FDI of the same industry in different time period. Finally, on the basis of empirical analysis, combined with China’s actual development, some suggestions using FDI to improve independent innovation ability, are given, including actualizing different foreign capital policy in different industries, increasing research investment in the industry and improve the industry innovation efficiency, improving the industry innovation environment.