The Foreign R&D Embeddedness And The Impact On Market Innovation Performance Of Foreign R&D Embeddness

The foreign R&D embeddedness is conducive to the construction of the National Innovation System(NIS).A reasonable level of foreign R&D embeddedness will help improve the market innovation performance of the host country and promote China's economic transformation and upgrading.Based upon panel data of 27 provinces/autonomous regions/municipalities(hereinafter referred as province)from 1998 to 2014,with principal component analysis approach used,this paper constructs the index system of foreign R&D embeddedness and measures China's provincial foreign R&D embedded index;still,this paper Studies on the reasons of foreign investment in R&D and the impact of foreign investment in R&D on market innovation performance in China.As follows:Firstly,using the principal component analysis method to the index system of foreign R&D embeddedness.Select eight indicators including foreign R&D personnel,foreign R&D capital,foreign development and transformation capital,foreign capital development capital,foreign R&D institutions,foreign patent applications,foreign new product projects,foreign new products sales and foreign new product output value as segment embedded variables.We measured the foreign R&D embeddedness index of 27 provinces(cities)in China.The study finds that China's foreign R&D embeddedness index is higher in the eastern region than in the central and western regions,showing uneven distribution.At the same time,China's overall level of foreign R&D embeddedness is low,and provinces(cities)are still raising the level of foreign R&D embeddedness.There is clearly a potential for improvement.Secondly,this paper makes a brief analysis of the influencing factors of the foreign investment in R&D in China.Then we ues the OLS model,the 2SLS model and the GMM model,an empirical study is made on the reasons for foreign investment in R&D in the country and in eastern,central and western regions.As a result,it has been found that the marketization process and international trade competitiveness of the national and eastern regions have a positive impact on foreign investment R&D embedded levels,and the impact of international trade competitiveness on foreign investment R&D embedded levels is significantly greater than the impact of marketization on foreign investment R&D embedded levels.The marketization process and international trade competitiveness have no obvious impact on the level of foreign investment in R&D in the central provinces;the competitiveness of international trade has a positive impact on foreign investment in R&D in Western provinces,but the role of western marketization in the embedding of foreign investment in R&D is not yet effective clear.Thirdly,this paper uses the non-parametric DEA-Malmquist method to measure the innovation performance of China's provincial market,and briefly analyzes the performance of China's market innovation,and compares the eastern,central,and western regions to the provinces within the region.Market innovation performance was compared.The results show that the average level of China's market innovation performance is relatively low,and the average level of market innovation performance among the three regions in the eastern,central and western regions does not differ significantly.However,the level of market innovation performance and the market innovation environment among provinces and cities within the region still exist.Big difference.At present,the state of market innovation performance in all provinces(cities)in China is mainly divided into two categories: “high market innovation performance/innovative environment instability” and “low market innovation performance/innovative environment stability”.Then,we built a basic model of the impact of foreign R&D embeddedness on market innovation performance.Through the OLS model and the 2SLS model,we examined the impact of foreign R&D embeddedness on the innovation performance of the country and the eastern,central and western regions,and through the space panel cointegration model and the spatial error correction model,further studies the role of spatial spillovers of foreign R&D embeddedness on market innovation performance.The results show that,in terms of nationwide,in the short term,foreign R&D embeddedness has a significant role in promoting the improvement of China's market innovation performance,but its spatial spillover has no significant effect on China's market innovation performance;in the long run,foreign R&D embeddedness and Its spatial overflow has a significant role in promoting China's market innovation performance.Whether from the long-term or short-term perspective,foreign R&D embeddedness in the eastern region and the western region has a significant positive impact on market innovation performance,but the spatial spillover of foreign R&D embeddedness has no significant effect on market innovation performance.The situation in the central region is not optimistic.In the short term,improving foreign R&D embeddedness will have no significant effect on market innovation performance.In the long term,only the space overflow of foreign R&D embeddedness will have a significant positive impact on market innovation performance.Finally,the article puts forward the guiding role of emphasizing foreign R&D embeddedness index,and fully understands the role of foreign R&D embeddedness in the promotion of China's market innovation performance.At the same time,it also pays attention to policy recommendations such as consideration of the regional equilibrium of foreign R&D embeddedness' impact on market innovation performance.