Research On The Influence Of Shandong Province's OFDI On Innovation Ability

Innovation is the first driving force for development.A new round of global scientific and technological revolution has emerged quietly,constantly changing the way of production and life of mankind and promoting profound changes in the world pattern.Strengthening the cooperation and exchange of science and technology industries among countries is an important way to enhance the technological level and innovation capacity of countries.On the "fast train" of reform and opening up,more and more Chinese enterprises,organizations and institutions have made overseas investment and conducted international cooperation.Foreign R&D spillovers can be obtained through OFDI,forming OFDI reverse technology spillovers.Based on the panel data of 17 prefecture-level cities from 2009 to 2017,this paper studies the relationship between OFDI and innov ation ability in Shandong province.In the theoretical part,this paper is based on the theory of direct investment and technological innovation.At the same time,the research literature of previous relevantscholars is reviewed,and relevant studies on the reverse technology spillover effect of OFDI and its impact on innovation capacity are summarized.Secondly,in the analysis of the current situation,the scale development,location distribution and industry distribution of OFDI in Shandong province are described in detail.At the same time,in order to make the measurement of innovation ability more repre sentative and comprehensive,this paper analyzes innovation input,innovation output and innovation environment.Through the construction of innovation ability evaluation system,the innovation ability of each region in Shandong province is evaluated.According to the relevant development strategy of Shandong province,the regional division was conducted to explore the regional impact of Shandong province's OFDI on the improvement of innovation capacity from four regions: Shandong blue peninsula economic zone?Yellow River delta efficient ecological zone? western economic uplift zone and the economic circle of provincial capital city agglomeration.Based on the mechanism of the impact of OFDI on innovation ability analysis part,in detail elaborated the foreign direct investment to obtain international R&D spillover effect of technology transfer through research and development,research and developm ent cost allocation effect,industry correlation effect and reverse technology absorption switching effect acts on the innovation input,innovation output,innovation environment in the province,and then affect the innovation ability.In the empirical part,based on the C-H and L-P international R&D overflow model,the basic model of the impact of Shandong province's OFDI on innovation capacity is established.The total index of innovation ability and the whole sample of sub-index were regressed.The empirical results show that the OFDI of Shandong province has a significant promoting effect on the improvement of innovation ability,and has passed the robustness test,regardless of the overall index of innovation ability or the sub-index.At the same time,on the basis of full sample regression,the regional impact of OFDI reverse technology spillover on innovation capacity was explored in four regions.The empirical results show that although there are differences in the impact of OFDI on the innovation ability of each region,the overall promoting effect is significant and it has passed the robustness test.Finally,this paper introduces Hansen(1999)threshol dregression model to further explore whether the financial development degree and urbanization level of each region in Shandong province affect the improvement of innov ation capacity of OFDI in Shandong province.Threshold regression shows that both threshold variables have single threshold,and both of them have significant promoting effect on the improvement of innovation ability of Shandong province's OFDI.Among them,after crossing the threshold of financial development,OFDI reverse technology spillover still significantly improves innovation capacity,but its effect is somewhat wea kened.After crossing the threshold of urbanization development level,OFDI reverse technology plays a more significant role in promoting innovation ability.Finally,based on the research conclusions,this paper puts forward several policy suggestions,such as raising the level of opening up,encouraging enterprises to "go global",giving play to the demonstration effect of excellent enterprises,strengthening the "logistics" strength of relevant departments,intensifying scientific research,adopting differentiated measures,and improving the absorption capacity of regional technology spillovers.