The Impact Of Foreign Capital Quality On Domestic Enterprises Innovation

This paper uses the panel data of11098manufacturing enterprises in China from the year2003to year2008to take the empirical research on the impact of foreign investment quality on Chinese manufacturing enterprises innovation performance, and combining with the heterogeneity of industry environment to discuss its moderating effect on the relationship between the two. The empirical results show that:Firstly, the impact of foreign capital intensity, technology level and management ability on the domestic funded enterprises innovation are significantly positive; further from the degree of the impact on domestic enterprises innovation, foreign capital intensive and technology level are stronger than management ability. Secondly, the moderating impact of the industry technological opportunities and the industry government regulation on foreign capital quality and domestic enterprise innovation is positive, that is, the promoting effect of foreign capital quality on domestic enterprise innovation of higher industry technological opportunity and industry government regulation is greater than the domestic enterprise of lower industry technological opportunity and industry government regulation. Thirdly, the moderating impact of the industry nationalization degree and the industry carbon dioxide emission level on foreign capital quality and domestic enterprise innovation is significantly negative, that is, the promoting effect of foreign capital quality on domestic enterprise innovation of higher industry nationalization degree and industry carbon dioxide emission level is smaller than the domestic enterprise of lower industry nationalization degree and industry carbon dioxide emission level. Fourthly, the moderating impact of the industry foreign capital existing on foreign capital quality and domestic enterprise innovation is not significant, that is, the relationship between the foreign capital quality and domestic enterprise innovation is not affected by the impact of the industry foreign capital existing. Based on the study of the impact of foreign investment quality and industry heterogeneity on enterprise innovation in China, we provide the beneficial references on the reasonable introduction of foreign investment, optimization of industrial layout and improvement of domestic enterprise innovation.