Analysis On FDI Technology Spillover To High-tech Industry In China

High-tech industry is a forward-looking industry in China's economy,which plays a very important role in adjusting industrial structure and development mode.In recent years,with the deepening of global integration,China's high-tech industries have witnessed rapid development.All along,thanks to the huge market size and market potential in China,transnational enterprises have made a large amount of foreign direct investment(FDI)in China,which,on the one hand,complements the domestic capital gap and,more importantly,the technology spillover effect on domestic enterprises.This paper first reviews and summarizes relevant domestic and foreign literatures,and introduces the theoretical basis,mechanism and influencing factors of FDI technology spillover.Then,by using China's high-tech industrial data from 2011 to 2016,the FDI situation in China was introduced by industry,enterprise nature and region.It is found that China's total export and growth rate of high-tech industries have been ranked the first in the world,but there is still a big gap between China and multinational enterprises in terms of technology,management and profitability.The eastern region is the most important and active area of FDI inflow,and the central and western regions have witnessed rapid growth.Electronics and communication equipment manufacturing is the industry with the largest share of FDI in high-tech industries.An empirical model of FDI's technology spillover to domestic enterprises in high-tech industries in China is established,as well as an empirical model of FDI's technology spillover to domestic enterprises' independent innovation ability in China.It is found that FDI has obvious technology spillover effect on domestic enterprises.FDI technology spillover effect is significant in western region and northeast region,which may be related to national strategic support and increasing FDI growth rate.FDI plays an important role in improving the independent innovation ability of domestic enterprises.By region,the eastern,central and western regions,especially the eastern region,can effectively digest,absorb and re-innovate the advanced technology for multinational enterprises.This paper analyzes the problems existing in China's high-tech industry,analyzes the gap between domestic enterprises and transnational enterprises,affirms the positive influence of FDI on the development of China's high-tech industry,and puts forward policy suggestions to further promote the spillover effect of FDI technology.