Effects Of China Shanghai Pilot FTZ On Technological Innovation

The world economic multi-polarization and globalization is still the mainstream trend at the post-crisis era, in this background, China still needs to accelerate the transformation of foreign trade growth mode to maintain the basis of a sound and rapid economic development, release of international influence, improve international competitiveness. Meanwhile, the establishment of TPP also makes China face a "second WTO" threat, so accelerating the opening up of China’s free trade is imperative.2013, Shanghai Free Trade Zone was set up, this open innovation initiative is an important Chinese practice of deepening the reform process, and also an important choice by accelerating the transformation of foreign trade growth in China. However, unlike other Western countries FTA different experiences of other FTA, it may not be entirely applicable Shanghai Free Trade Zone in China’s conditions and policies. Therefore, it is significant based on the experience of other free trade zones to carry out the construction of Shanghai Free Trade Zone. Through empirical analysis of technological innovation factors influence on the outcome of free trade in the region, combined with the experience of other free trade zones, this paper provides recommendations for the development of Shanghai Free Trade Zone of the test. This study takes eight Free Trade Zone by eight years of data 1998-2012 as a panel data sample to establish the impact empirical model of technological innovation output by considering the innovation output of different sources based on the literature review, explores how to enhance the level of technological innovation of free trade in the region. The results showed that:the investment of science and technology funds plays a positive role in promoting innovation, and the promotion is remarkable; the investment of technology personnel has a positive role in promoting, but the effect is not significant; FDI have a greater role in promoting on innovation output of free trade in Free Trade Area; export output is also promote innovation, technology transfer for innovation increase and enhance regional innovation capacity output also has a positive role in promoting; innovation output per capita GDP is negative on promoting innovation output; for technical innovation output the more the number of the employed population, the much positive on promoting; government expenditure has a positive role in promoting and the promoting is remarkable. Such empirical results provides a reference for establishing of Chinese Shanghai Free Trade Zone, that is, China hopes to enhance innovation capability comprehensive national strength by establishing free trade area, because accelerating the flow of FDI has a significant role on promoting innovation capacity for a national and regional. In addition, the realization of the promotion of technological innovation capability, also needs the cooperation of the government and related businesses. Meanwhile, compared with other free trade zone, Shanghai Free Trade Zone should enhance technological innovation capability by increasing funding for science and technology, furthering open development, attracting foreign investment, introducing of technical reasonably, developing with related industry collaboratively, accelerating the upgrading of knowledge spillover, etc.