Study On The Factors And Incentive Mechanism Of R&D Technology Spillover Effect Of Foreign Investment In Jiangsu

Began to attract foreign investment from1978Jiangsu Province signed a lot ofcompensation agreements and drawn foreign investment began in1981. Early20th century tothe21st century， Jiangsu conscientiously implement positive， rational and effective foreignpolicy， improving infrastructure environment， improve project quality and reduce the costof human resources， to become foreign capital province.The international companies playmore and more important part in the industrystructure upgrading and enhancing technicalinnovation ability， whereas how it will end due to whether the R&D research institutionscan produce enough technical spillover effect. At present， Jiangsu is deeply implementinnovation drive development strategy， speed up the construction of innovativeprovinces.Under such background， it is of great practical significance to research on theR&D spihover effect problem of international companies on economic development ofJiangsu.This paper first summarizes the status of FDI and R&D and related literature andresearches abroadly and domestically， distinguishes the concept of R&D technologyspillover， discusses the development status of R&D in Jiangsu province，enumerates themain influence factors of technology spillover.This paper make a deep research on the internal principles of international R&Dspillover based on the knowledge product function and make an empirical study based on thedata during2003and2012by using the cointegration test， VECM models and GrangerCausality test. The study indicates that the spillover effect is more obvious in long term thanin the short term， which also shows that the R&D investment of international corporations does have spillover effect on economic development of Jiangsu province and the short-tenn isweaker. It probably have something to do with the insufficient ability of local companies toabsorb R&D technological achievement in the short term.The paper chooses to insight into the R&D spillover effect under the framework of thecomparison of local and foreign companies while most of the traditional researches limited tothe influence on the R&D spillover effect by the factors of foreign capital and human capitalinvestment. This point of view is quiet creative and innovative.