Research On The Impact Of FDI And Government Support On Technological Innovation

With the promotion of reform and opening up,China's economy has taken off and the contribution of technological innovation has played a decisive role.China's technological innovation relies to some extent on international technological spillover,that is,it enhances its own technological innovation capability by attracting FDI "introduction-digestion-absorption" or "introducing-digesting-absorbing-recreating" advanced technologies in developed countries and promote the level of economic development.Under the background of economic globalization,the extent of China's opening up to the outside world has further increased,and the scale of attracting foreign direct investment(FDI)has also been constantly expanded.Foreign direct investment has become an important part of China's economic life,and technological innovation is the important impetus of modern economic growth,which is the basis for countries and regions to maintain long-term stability and rapid economic development.Therefore,studying the impact of FDI on technological innovation in our country is of great practical significance.On the other hand,due to the peculiar attributes of technological innovation products,it is very easy to produce the problems that can not be solved by the market forces.Therefore,the government is required to intervene in the technological innovation activities of enterprises.At present,China is still in the initial stage of technological innovation.Enterprises are not sufficiently aware of the status of technological innovation and their motivation for innovation is not strong.So it is necessary to study the impact of government support on technological innovation in enterprises.Based on the above,this article firstly reviews the related researches of domestic and foreign scholars,and then introduces the concepts and theories related to technological innovation,the theory of technology spillover from FDI,as well as the publicity,uncertainty and huge investment amount of technological innovation products,which analyzes the necessity of government support for technological innovation activities of enterprises.A large number of literatures have studied the impact of FDI and government support on technological innovation from different perspectives.However,there are few studies on the impact of the interaction between FDI and government support on the technical economy.So this paper first use Granger causality analysis method to test the relationship between FDI and government support.Then based on panel data of 29 provinces in China from 2001 to 2016 built panel threshold model and choose the level ofopenness and human capital of absorptive capacity as the influential factors to explore the impact on technological innovation from FDI,government respectively and the interaction between FDI,government support.The results of the study are as follows:(1)Through the Granger causality test,the influence of government support on FDI at a significant level of 5% rejects the null hypothesis.It is considered that government support is conducive to driving the growth of FDI.This may be attributed to the fact that when the host government attaches importance to its own science.When the government gives its support to capital investment,external environment and institutional policies,foreign investors will be attracted,which will cause the increase of FDI and further affect the domestic technological innovation.(2)Through the empirical results of panel threshold model,the investment of R&D and input of R&D personnel as control variables all have positive effects on technological innovation.In addition,we find that no matter which is the threshold variable,FDI,government support or the interaction between FDI and government support has a non-linear positive correlation with technological innovation,which shows that the introduction of FDI and the financial support from the government will increase the output of technological innovation and raise the level of technological innovation.(3)When studying the impact of the interaction between FDI and government support on technological innovation,we find the direct positive correlation between FDI and government support interaction is greater or smaller than the threshold value,while the impact of FDI on technological innovation is not significant although it is less than the threshold value.The introduction of government-supported variables has significantly promoted the impact of FDI on technological innovation,which proves that the government has an incentive role in scientific and technological innovation.(4)With the continuous improvement of the level of opening up and the level of human capital,the threshold is constantly increasing,and the coefficient of estimation is constantly increasing,the impact of FDI,government support and as well as the common impact of FDI and government support on technological innovation is also on the rise.This shows that the level of opening up and the development of human capital level are conducive to the role of FDI and government support for technological innovation.