Research On The Effect Of Firm's Internationalization On Innovation Ability

Due to the reform and opening up policy,the Chinese government promotes vigorously the "going out" strategy for enterprises,which encourages enterprises to go abroad and establish overseas markets.After accession to WTO,China has provided domestic enterprises with support and assistance to enter international market.The level of international management of Chinese enterprises has reached a new level.Therefore,the internationalization strategy has become an indispensable part of the business strategies.Innovation is not only the source of national progress,but also the strong support for enterprises to move forward.Innovation not only accelerates the efficiency of social operation,but also promotes the rapid development of enterprises.With the increasingly fierce competition,enterprises should cultivate their innovation capability and keep pace with the times if they want to remain invincible.Based on such situation,it is of great theoretical and practical significance to explore the relationship between the degree of internationalization and innovation capability of enterprises.First of all,after studying the existing theories and literature research at home and abroad,this paper tries to find out the theoretical gap between enterprise internationalization and innovation capability.Based on the fact,this paper explores the weakness of Chinese enterprises' internationalization and innovation development.Then,this paper empirically tests the relationship between the degree of internationalization and innovation capability,which takes data of Chinese manufacturing listed companies in 2001-2010 as research sample.Finally,the empirical results are summarized in this paper.Combined with the actual situation in China,it provides some suggestions for the better international operation and improving innovation capability of the enterprises from the prospective of companies and government.