The Effects Of FDI On Technology Innovation From The Perspective Of Industrial Agglomeration

Technological innovation has always been one of the hot topics in the field of economics,it is not only the basic way to promote economic development,but also the fundamental driving force to improve the international competitiveness of a country.With the acceleration of economic globalization and the integration of trade and investment,the restructuring and optimization of international production factors and the rational distribution of industrial structure have a profound impact on the technological innovation of domestic enterprises.At present,the correlation between industrial agglomeration and FDI in space becomes more and more prominent,but the related literature is basically from the two separate aspects to study its impact on technological,there have few scholars from the perspective of industrial agglomeration to examine the impact of FDI on technological innovation.We have adopted the theoretical model,mechanism analysis and empirical analysis to study the effect of FDI on technological innovation from the perspective of industrial agglomeration:on the one hand,it can enriches and develops the industrial organization theory,international trade theory and technological innovation theory;on the other hand,it can provide reasonable policy recommendations for our government and enterprises to make reasonable strategy to attract foreign investment,industrial development strategy and technology innovation strategy,to achieve the new normal development of our country's economy.In the analysis of the current situation,the industrial agglomeration,FDI and technological innovation ability of our country are analyzed from many angles:the level of industrial agglomeration in our country generally presents the phenomenon of decreasing from east to west,and there is also a phenomenon of unbalanced distribution in the industry level;although the scale of FDI in our country is developing rapidly,but there is a phenomenon of uneven distribution in the industry level and regional level;the technology innovation capability of China although showed a gradual upward trend as a whole,but the growth rate is slow,there is still exist a great gap when compared with the developed countries,and there also showed a in turn decreasing phenomenon from east to west on the geographical spatial level.In the analysis of theoretical model and mechanism of action:on the one hand,the FDI technology spillover see as a part of the total knowledge of the source of the R&D department,the level of industrial agglomeration see as a influence factor on the R&D department's productivity and local enterprise absorptive from FDI technological spillovers,therefore,we construct the production function of R&D department.In the end,the competitive equilibrium analysis and static analysis are carried out on the three sector economic system,which is composed of the final product department,the intermediate product department and the R&D department.The results show that the FDI from the perspective of industrial agglomeration has a promoting effect on the improvement of the level of technological innovation;then we separate from the flow of personal,the cooperation among enterprises,the corporate derivatives and the informal communication between enterprises to analyze the approach and mechanism of FDI technology spillovers within the industry agglomeration.We test the influence of FDI on China's technology innovation by using of spatial panel Durbin model based on Chinese provincial panel data set of yearly observations during the period of 1997-2013.The empirical results support the conclusion of theoretical model,at the same time,the empirical results shows that:industrial agglomeration can only play a good technology spillover effect only within a certain geographical space,and the spillover effect is no longer significant with the expansion of geographical spatial distance;in a more open economic environment,FDI can be more effective in promoting technological innovation;the interaction of industrial agglomeration and FDI makes the FDI more effectively to play its technology spillover effect from the perspective of industrial agglomeration,on the other hand,it also makes the industrial agglomeration have the local effect and spillover effect at the same time.