The Influence Of Foreign Direct Investment On Technology Innovation Of China

The development of world economy is already beyond the limitation of the traditional national level sense. This trend leads the global economy units into a whole, and makes the country who is as individual gets closer economic relation with others. From the actual situation of China, foreign direct investment, as the measurement of economic connection, presents that characteristics has been rising steadily in quality. Foreign direct investment not only could bring foreign funds to China, but also spillover efforts, which has the strong practical significance to China’s technology innovation.This article is based on the reading of related literatures and writings in and abroad, furthermore combined with related concepts and the actual development situation of foreign direct investment in China, analyses the effects of FDI on China’s technology innovation. And then, by using the data from2001to2012to make the empirical analysis, and draws writer’s own conclusions. In the empirical analysis part, first of all, this article analyses from the national angle, specifically, is to collect the panel data of China’s provinces during the time from2001to2012, set the input and output of technology innovation of China’s enterprises as the breakthrough point, to analyze the influence of FDI on China’s enterprises technology innovation. After a complete analysis on the impacts of China, by choosing the same level of development provinces in different regions of China and makes them as one smaller area, after that studies the influences of FDI on innovations of these areas. According to the analysis conclusions, the author put forward the following views:1. For China and selected areas, foreign direct investment has obvious positive effects on technology innovation of domestic enterprises output, and for the central area the positive effect is higher than the nation’s level and the other two areas’ level.2. From the situations of China and selected areas, foreign direct investment has obvious positive effects on technology innovation of domestic enterprises output, and to the selected areas, the eastern area has the biggest positive effects, and then the western area, the central area is the last. Finally, based on the empirical analysis and combined with China’s actual, author put forward relevant policy suggestions.