Study On The Relationsip Among FDI Technology Spillovers Effect, Absorptive Capacity And Innovation Performance In Shanxi Province

With the development of China’s reform and opening and economicglobalization, more and more foreign enterprises start to invest in the Chinesemarket. How can enterprises use FDI technology spillover and innovationperformance to study the policies of the region’s foreign investment? Thisquestion has already become the point of studies at home and abroad. Shanxi isone of the largest provinces which have rich resources. The key question intransforming Shanxi’s economies is to convert the resource advantage intoeconomic advantage. In recent years, Shanxi have begun to attract foreigninvestment actively and hoped to learn advanced technology and managementexperience to achieve a technology leap through introducing foreign investment.Although the scale of foreign investment in Shanxi Province showed a rapidgrowth trend, due to the differences in the absorption capacity of FDItechnology spillover, Shanxi still have a large gap with the other five provincesin central China. How to enhance the absorptive capacity of FDI technologyspillovers effectively and promote the innovation performance becomes aburning problem in Shanxi.This thesis firstly analyzes the foreign and domestic relevant researchresults and theoretical basis. Secondly, by comparative analysis of the status ofShanxi and the other five central provinces, this thesis identifies the maininfluence factors of FDI technology spillover effect and innovation performancein Shanxi. Based on this, this thesis further explores the effect mechanism of theFDI technology spillover effect, absorptive capacity and innovationperformance and proposes research hypothesis. Then this thesis selects the panel figures of eleven cities in Shanxi Province from2003to2013to analyzeby OLS regression analysis.And this thesis explores the relationship betweenthe FDI technology spillover effect and innovation performance from theperspective of absorptive capacity.At last, according to the analysis of thepresent situation analysis and empirical results, this thesis puts forward therelated countermeasure proposals.This thesis findings indicate that FDI technology spillover effect has apositive impact on innovation performance in Shanxi Province.Absorptionability also has a positive effect on innovation performance, but the absorptionability doesn’t form a benign effect between the FDI technology spillover effectand innovation performance. The main reason is that Shanxi province didn’t usethe FDI properly, and the absorption ability was limited by various factors. Thismakes mismatch between the comprehensive development level in Shanxiprovince and the advanced technology. The intermediary function of absorptivecapacity between the FDI technology spillover effect and innovationperformance doesn’t work.The innovation of this thesis: Throughout the related research at home andabroad, the studies on FDI technology spillover effect, absorption ability andthe innovation performance have not been comprehensively discussed yet,particularly in the actual research in Shanxi province. This thesis will unify FDItechnology spillover effect, absorption ability and the innovation performanceinto a theoretical framework from the visual angle of absorptive capacity toresearch on the relationship between FDI technology spillover effect andinnovation performance, and develops a theoretical framework. This thesis willcomplement and enrich the theory of FDI technology spillovers and innovation,and provide important theoretical and practical foundation for relevantpolicy-making in Shanxi.