Research On Influence Of Heterogeneous FDI On Independent Innovation Capability Of Chinese Domestic-funded Manufacturing Enterprises

Manufacturing industry has an important position in China’s economic and social development, the independent innovation capability of manufacturing industry has positive impacts on improving China’s position in the international competitiveness. In recent years, foreign direct investment(FDI) has poured into Chinese manufacturing industry. A large number of facts show that: the inflow of FDI has promoted the technological progress and the upgrading of industrial structure of Chinese manufacturing industry, FDI has indeed promoted the development of China’s manufacturing industry in a certain extent. Many scholars have studied the influence of FDI on the independent innovation capability of Chinese domestic–funded enterprises, but existing researches have not yet come to a consistent conclusion. Furthermore, the FDI which inflow into Chinese manufacturing industry are different in the source place, technical level and industry flows direction and other aspects, then are the influences of FDI on the independent innovation capability of Chinese domestic–funded manufacturing enterprises different?Firstly, this paper explained the principle and mechanism of how FDI influences the independent innovation capability of Chinese domestic–funded enterprises. Secondly, this paper separately defined the heterogeneity of FDI from the angles of source place and technical level and established an economic model based on the production function of Douglas. Then this paper empirically studied the influence of heterogeneous FDI on the independent innovation capability of Chinese domestic–funded manufacturing enterprises by selecting the panel data of 27 manufacturing industries in our country from 2009 to 2014, and examined the changes of influence from the point of time by selecting the panel data from 2009 to 2011 and 2012 to 2014. Finally, this paper comprehensively analyzed the cause of the empirical results combining with the related theory and put forward some relevant countermeasures and suggestions.This study has come to these conclusions: Firstly, the overall FDI has a significant positive effect on the independent innovation capability of Chinese domestic–funded manufacturing enterprises, but in recent years, the promoting effect is obviously weakened; Secondly, from the point of the different source places, the FDI from Hong Kong, Macao and Taiwan played a significantly positive role in promoting the independent innovation capability of Chinese domestic–funded manufacturing enterprises, but in recent years, the promoting effect is obviously weakened, and the weakening degree is higher than that of the overall FDI. FDI from the other sources has no obvious influence on the independent innovation capability of Chinese domestic–funded manufacturing enterprises on the whole, although the positive effect has become obvious in recent years, the absolute value of the positive promoting effect has also declined; Thirdly, from the point of the different technical level, the positive promoting effect produced by the FDI of medium technical level is largest and most significant. The FDI of higher technical level has positive promoting effect on the independent innovation capability of Chinese domestic–funded manufacturing enterprises, but the promoting effect is much smaller than that of the FDI of medium technical level. The FDI of low technical level has a positive effect on promoting the independent innovation capability of Chinese domestic–funded manufacturing enterprises, but the promoting effect has an obvious quality of hysteresis. In recent years, the promoting effects from FDI of three technical levels all have decreased, the promoting effects from FDI of low technical level decreased most obviously, which changed from the significantly positive promoting effect to the significantly negative inhibition effect.