The Impact Of FDI Technology Spillover And Absorptive Capacity On Manufacturing Output

Since the "Made in China 2025" strategy was introduced,it has caused a manufacturing revolution that is both an opportunity and a challenge for the entire manufacturing industry.In recent years,China's manufacturing industry has maintained a strong development momentum,but the output growth momentum is insufficient,and it is still at the low end of the global industrial chain division system and value chain.As the manufacturing industry attracts the most foreign direct investment,it regards the international technology spillover effect of foreign direct investment as an important way to promote manufacturing production and technological progress.For China's economic development,FDI technology spillover has formed a technological progress model mainly based on the introduction of knowledge and technology.This development model also has some negative effects on the development of the manufacturing industry."Emphasis on introduction and neglect absorption" has led to technological dependence.The key to the problem lies in the lack of effective absorption capacity and conditions.Therefore,in the process of transforming from a large manufacturing country to a strong manufacturing country,how to use the technology spillover advantages brought by foreign direct investment to transform our own production is particularly important.From the perspective of the entire manufacturing industry and different types of sectors,this article explores the impact of FDI technology spillover and absorption capacity on manufacturing output.On the basis of clarifying the mechanism of FDI technology spillovers on output,the article introduces the industry's absorptive capacity elements,and analyzes the theoretical mechanism of the impact of the synergy between FDI spillover and absorptive capacity on manufacturing output with the help of the absorption capacity model.The data of 26 manufacturing industries in China Industrial Statistical Yearbook was selected as the samples of the entire manufacturing industry and sub-industries to establish relevant empirical models and conduct comparative tests.The research results show that: FDI technology spillover can effectively increase the output of domestic manufacturing in China.FDI technology spillover is affected by absorptive capacity.The indicators of absorptive capacity have various effects on FDI technology spillover.Among them,human capital,R&D investment and technology spillovers are positively correlated,while technology gaps and technology spillovers have inverted U-shaped correlation with the effect on FDI technology spillover.Furthermore,human capital has more positive correlation than R&D investment.Besides representing potential absorptive capacity directly affect output,the human capital,R&D investment and technology gaps also form a realistic absorptive capacity to affect manufacturing output with FDI technology spillover.Thus,in the current market for technology,the matching of absorption capacity can effectively resolve the bottleneck of technology and production.The effects from low to high of FDI technology spillover on different industries are technology-intensive industries,labor-intensive industries,and capital-intensive industries,which provides guidance for introducing foreign direct investment.For labor-intensive industries,the technical complexity is low.Increasing R&D investment makes it easier for domestic-funded enterprises to imitate,absorb and digest advanced technologies of foreign-funded enterprises to obtain technology spillover effects,but the lower production margins cause human capital not to obviously promote FDI technology spillovers.The opposite is true for capital-intensive industries and technology-intensive industries.Increasing human capital is one of the important measures to increase the FDI spillover effect of capital-intensive industries and technology-intensive industries.The absorption and conversion mechanism of R&D investment is not efficient and cannot make the domestic-funded enterprises truly benefited.Therefore,considering the impact of absorptive capacity on heterogeneous industries,governments and enterprises should adapt to local conditions and adopt different strategies for introducing foreign investment to different industry environments.It shows that the research in this article has a positive exploration effect on how the development of the entire manufacturing industry and sub-sectors can changed from the "introduction-imitation" mode to the "introduction-absorption-redevelopment" mode.