The Research On FDI, Intellectual Property Protection And Independent Innovation In Our Country

China is currently in a critical period of rapid economic and social development. Improving the capability of independent innovation and building an innovative country is the core of national development strategies and the key to improving comprehensive national strength. And China is a developing country. We still need to be introduced on technology by FDI technology spillover. With the deepening of globalization and the strengthening of intellectual property protection all over the world, the relations among our country’s FDI, intellectual property protection and independent innovation ability has drawn greater attention. This paper study on the degree of protection of intellectual property thus affecting the relationship between attracting foreign direct investment and the independent innovation capability by the derivation of the theoretical model, and use the VAR model and PVAR model to analyze the relations among FDI, intellectual property protection and independent innovation on Chinese 1991-2010 national and inter-provincial panel data. The result reveals:(1) To enhance the capability of independent innovation is contribute to the growth of China’s foreign direct investment. The other hand, the impact of foreign direct investment on the capability of independent innovation is weak, which is much larger proportion of China’s foreign direct investment from developing countries than from developed countries, and the FDI from the developing countries or regions can not bring a great deal of positive spillovers.(2) The impact of intellectual property protection on foreign direct investment is complex. It is constrained by many conditions. On the whole, a strong intellectual property protection shall ensure the safety of foreign-funded enterprises in the technical aspects, so as to increase foreign direct investment to China. From the individual point of view, because China is a developing country, the weak intellectual property protection will help to improve the technological progress of mimic the imitation but it will lead to reduction of FDI.(3) The impact of intellectual property protection on the capability of independent innovation is also fluctuant. Strong intellectual property protection will urge the developed countries to increase R&D investment in China’s and the high technology transfer can improve the capability of independent innovation of the multinational companies in China’s branch. However, our innovative capability is weak, the increase of intellectual property protection will cause imitation reduction, thus affecting the ability of independent innovation.At last, the article proposed several policy recommendations on empirical analysis of the results:(1)The introduction of FDI with higher levels of technology, optimize the structure, the establishment of information exchange platform, which will drive independent innovation of domestic enterprises.(2) Select the appropriate intellectual property rights protection, at the same time improve the intellectual property related laws and regulations, and to improve public awareness of the rights and legal talent and technology personnel training.(3) To further increase the speed up innovation infrastructure, encourage domestic enterprises to improve their innovation capabilities, thereby enhancing the competitiveness of domestic enterprises in international trade.