Influence Of Import Competition On Innovation Ability Of Chinese Manufacturing Enterprises

China has made great achievements in economic development since its reform and opening up.At the same time,foreign trade has also developed rapidly.In 2017,the total import value of China's goods trade reached 27.8 trillion yuan.The total value of goods trade imports was 12.5 trillion yuan,and the total value of exports was 15.3 trillion yuan.The development of foreign trade has become an important supporting force for the promotion of national economy and social development.Import trade is a significant channel for technology diffusion,which is necessary for China' s economic growth.China needs to make full use of technology diffusion from import.The impacts of import trade on China's corporate innovation capabilities in the context of entering the new normal economy plays a role on the economic development of the country.Domestic and foreign related literatures are our basis for this study.We use theoretical analysis and empirical analysis to study the impact of import competition on China's corporate innovation capabilities.Firstly,for the selection of sample countries,this paper take the imports from G7 countries as example since the G7 countries' R&D level and technological level are representatives of the world's technological frontiers.Secondly,we review the origin and development of innovation theory and we enumerate the related concepts of enterprise's innovation ability and import competition.Combining the ideas of enterprise innovation nationally and internationally,we make our own understanding of the enterprise's innovation ability.These data are summarized to determine the mechanism of the impact of import competition on corporate innovation.Finally,using the micro-enterprise data panel of Chinese industrial enterprises database from 2005 to 2007,a regression model was constructed to analyze the impact and role of import competition from G7 countries on the innovation capabilities of Chinese manufacturing companies.The empirical results show that import competition from G7 countries can significantly improve the innovation capability of Chinese manufacturing companies.In addition,there are other enterprise level factors,such as R&D investment,the age of the company,the size of the company,the capital intensity of the company also have a significant positive correlation with corporate innovation.In addition,this paper classifies different types of companies.The study finds that import competition is more significant in promoting the innovation capability of two-way trading companies and domestic-funded enterprises.For enterprises importing only one-way and foreign-funded enterprises,import competition has no significant effect on their enterprise innovation.This article draws corresponding conclusions based on the above empirical research,and gives relevant policy recommendations from government and corporate levels.