A Research On The Influential Factors Of FDI Technology Spillover Effect Of Manufacture Industry In China

In recent years, in the economic globalization upsurge many developing countrieshave made policies to encourage attracting foreign direct investment. The introduction offoreign capital not only provide financial support for economic development, but alsopromote the country’s technological progress and technological innovation. Foreign directinvestment (FDI) can promote the improvement of labor productivity and the development ofthe economy of the host country in the form of technology spillover. Since China’s reformand opening up, foreign direct investment has become an important source of large-scaleintroduction of advanced technology in our country.Manufacturing industry is a pillarindustry of our country and also largest industry attracting foreign investment in China at thesame time. In principle, due to the technology spillover, the introduction of FDI can promoteto improve manufacturing technology level of our country significantly. But the fact is that itstill has significant gaps of the technical level between manufacturing enterprises in Chinaand foreign companies.In outline on the national economic and social development of the twelfth five-yearplan of the People Republic China which is released on March14,2011pointed out:"useforeign capital to optimize structure, rich style, broaden the channels, improve quality, payattention to improve the soft environment for investment, protect investors’ legitimate rightsand interests." FDI is important source of technological innovation and technologicalprogress of our country’s enterprises. And improving the level of science and technology andenhancing the capacity of technology innovation is the fundamental way to build aninnovation-oriented country and realize the goal of social and economic development in ourcountry, and also the main measures to optimize the industrial structure, promote industrialupgrading, improve the terms of trade in our country and improve the industrial internationalcompetitiveness.Firstly, this paper analyzed the status of FDI technology spillover of the manufacturingindustry in our country. The conclusion is that the technology spillover effect of FDI in ourmanufacture industry is not significant. The expression form of the above conclusions are theobvious technology gap between our manufacturing enterprises and foreign enterprises in China, backward technology innovation ability, slow technological progress, lowermanagement level.Second, according to the four way of FDI technology spillover effect in Chinamanufacturing industry screening the influence factors of FDI technology spillover effect.This dissertation screened nine factors. They are technology gap between domestic andforeign enterprises, the absorb ability of new technology, market openness, financial marketefficiency, corporate R&D, the intensity of competition in the industry, industry clusterdegree, the condition of infrastructure, human capital. Then its mechanism are analyzed.Then, quantify the influence factors and select appropriate data from the national leveland industry level respectively for empirical analysis. Reach conclusion, that are marketopenness and efficiency of financial market are insufficiency, and the technology gap is toolarge to have positive effects on manufacturing FDI technology spillover effect, and theinfrastructure, the absorption capacity of the new technology, the intensity of competition inthe industry, scientific research funds investment, human capital factors on the technologyspillover of FDI has certain positive role, but the effect is small.Finally, according to the results of the study, this dissertation put forward thecountermeasures to promote China’s manufacturing technology spillover of FDI from thenational level, industry level and enterprise level.This paper points out that the governmentshould increase financial market support, strengthen infrastructure construction, reasonableopen market;Industry should be reasonably adjust the intensity of competition, increase theindustry cluster development;Enterprises should continue to increase research investment,improve the absorption ability of the new technology, pay attention to the development ofhigh technology talents.