Impacts Of Foreign Direct Investment On Enterprise Innovation

During the 1960 s and 1970 s,the framework of the traditional theory of multinational enterprises(MNEs)had come into being,against a background of rapid economic development and quick expanding of international business of MNEs.Scholars at that time tried to explain such phenomena and therefore produced many theories.They focused their attention on the issue of the competitive advantages of MNEs.These theories about advantage was a very good explanation for the existence of MNEs.However,with the development of the network and information economy and the knowledge economy,the factors that affect the stability of the environment,such as control,rules and national boundaries are crumbling.The stable and static multinational business environment is turning to a complex,uncertain and changeable.MNEs are facing a reality of survival in a complex environment.In the complicated dynamic environment,to obtain the resources has become the Primary task,especially the intangible resources like knowledge.Then the global competition and the rapid development of information technology will gradually become the main factors for MNEs to build competitive advantages in the future.How to get these advantages? Now more and more MNEs have built a global network system,through the network to collect and obtain the valuable and differentiated resources as their new competitive advantages.As a result,the management concept and paradigm of MNEs have changed greatly: Not emphasize the protection and utilization of the original advantages,but obtain the new.Can the parent company obtain the competitive advantages through the construction of the resource network,and form the technology spillover? Whether the company can improve the capability of independent innovation through technology spillover,and promote the innovation and upgrading of enterprise products? What are the factors? The countries especially the developing countries pay more attention to obtain resources through OFDI,and thus enhance the innovation ability of the parent company,has a very important theoretical value and practical significance to further research on these issues.From the perspective of resource and network cluster,this paper will take the measures in combining theory with empirical and connecting panel to time series to study the influence mechanism of foreign direct investment on enterprise innovation from macro and micro dimension.In the study of logic: at first,through the literature review and relevant theoretical basis,the paper analyze OFDI in the three spatial cluster classification-productive knowledge clusters,technological knowledge,market knowledge cluster cluster.Explore the path to promote the enterprise innovation,and on the basis of path analysis summarize four transmission mechanisms: revenue feedback transmission mechanism,the external mechanism of bottom research,information and resources internationalization feedback transmission mechanism,talent exchange and competition mechanism.Then combined the Cobb Douglas production theory with the knowledge production function(PKE)proposed by Bloomn & Griffith(2001)create a model,then put forward three hypotheses: foreign direct investment promote independent innovation of enterprises,though improving the operating income.foreign direct investment can promote technological innovation though the technology spillover.foreign direct investment promote independent innovation of enterprises though the flow of talent.Secondly,this paper reviews the current situation of China's foreign direct investment and enterprise innovation from the macro and micro perspectives: the foreign direct investment growth rate of China is increasing.And the patent application of the enterprise is mainly concentrated in the manufacturing industry.Thirdly,this paper use the fixed panel and time series to analyze the impact of OFDI on enterprise innovation.The empirical results show that: The significant effect of foreign direct investment promoting the innovation of enterprise patent technology shows that the advantages of resource integration can be transformed into the competitive advantage of enterprises.And this effect on the parent company has a certain industry differences.Finally,though the empirical analysis results,from the perspective of the enterprise and the state to explore countermeasures that foreign direct investment promote enterprise innovation.At the enterprise level: rational planning of foreign direct investment in the layout of the location of the cluster;expanding the investment in the target cluster to form their own resources network;to improve the level of independent R&D investment and human capital.At the national level,building a support platform,encourage foreign direct investment;to establish a wide range of diplomatic relations,create a better environment for international investment,completing the legal system,strengthen the protection of intellectual property rights.The outcome of the study not only enriches the theory of technological innovation capability of enterprises,but also for the exploration of foreign direct investment to provide methods and paths to promote the enterprise innovation ability,which has practical significance for the development of OFDI.