Study On The Impact Of Pilot Free Trade Zone On Regional Innovation Capability

In the process of economic globalization and regional economic integration,countries set up Free Trade Zone in order to develop foreign trade,and through foreign trade to promote domestic economic development.In order to meet the challenge of the new rules of international trade and seek the new economic growth point,the strategy of building Pilot Free Trade Zone is put forward in China.After the establishment of the Pilot Free Trade Zone,the development of local finance,trade and investment has been promoted through measures such as deepening financial system innovation,trade facilitation,investment facilitation and transformation of government functions,and the improvement of these conditions provides excellent innovation environment and promotes the regional innovation ability.This paper use the "counterfactual" analysis method,based on 28 provinces and cities in2010-2016 invention patent grant months growth rate data,to empirical study on the difference between the actual value and the "counterfactual" value of innovation variables before and after the establishment of the four major Pilot Free Trade Zones in Shanghai,Tianjin,Fujian and Guangdong.The study found that the establishment of Shanghai,Fujian and Guangdong Pilot Free Trade Zones had positive effects on regional innovation,and the average policy effects on the improvement of regional innovation capacity were 6.4%,1.02% and 18.26%,but the innovation policy effect of setting up the Pilot Free Trade Zone in Tianjin is not significant because of the influence of external events.Based on the empirical results,five suggestions are put forward: First,local government can increase the input and support of R&D,and promote regional innovation through direct subsidies,technical support,and improve the innovation environment;Second,the local authorities should actively attract and rationally utilize foreign capital,learn from the investment experience of foreign Free Trade Zone,enhance the attraction to foreign capital,and at the same time rationally utilize the knowledge and technology spillover brought by foreign capital;Third,promoting the formation of industrial clusters in the region,and providing good environment for industrial agglomeration;Fourth,paying attention to regional financial development and raise the level of financial development on the premise that risks can be controlled;Fifth,each Pilot Free Trade Zone will develop its economy in accordance with its own characteristics and drive innovation.