The Technology Spillover Effect Of FDI On The Innovation Of Automotive Industry In China

Independent innovation capability is the core of the sustainable development of China's automotive industry.Only with a strong level of independent innovation,can China's automotive industry survive and grow in a competitive market environment.Although the automotive industry founded complete system of manufacturing automobile,the overall level of productivity was low and the industrial base was weak in 1980 s.If China's automotive industry completely relied on its own technology accumulation to achieve original innovation,the cost of R&D and the risk of failure are both too high.Thus,automotive industry seized the opportunities and implemented reforms including a variety of preferential policies to attract foreign investments,strengthening economic cooperation with foreign enterprises.After decades of development,some international famous automobile enterprises have established a joint venture relationship with China's automotive industry while others built up wholly foreign-owned enterprises.The cooperation between Chinese and foreign automotive enterprises in new energy vehicles might set off a new wave of foreign investment.But whether the introduction of FDI promoted the independent innovation of China's automobile industry is well worthy of being thought.The situation of slow-speed economy and the serious air pollution enhance the significance of studying the technology spillover reflection of FDI on the independent innovation ability of the automobile industry.This paper analyzes how FDI affects the independent innovation capability of automobile industry China.Then,the article uses the time series data of China automobile industry from 1992 to 2015,studying the technology spillover reflection of FDI on the independent innovation ability of the automobile industry.The result shows that the FDI competition effect has significant positive influence on the independent innovation ability of the automobile industry while FDI correlation effects are not significantly promote the automobile industry to enhance the level of R&D.Therefore,in order to promote China's automotive industry to develop in a independent and rational way,the government should strengthen guidance and control ability,guide theautomobile industry to attract foreign investment reasonably,improve the market mechanism and let the market play a decisive role.Enterprises ought to enhance the learning capability and the ability of independent innovation.Also,automotive industry need increase R&D investment and the introduction and cultivation of talents,enhancing the competitiveness of China's automotive industry.