The Impact Of Two-way Direct Investment On Innovation Capacity

Firstly,this thesis reviews both domestic and foreign research results on Two-way Direct Investment,its influence on Innovation Capacity,and the threshold variable.Secondly,the influence of Two-way Direct Investment on Innovation Capacity is analyzed based on both national and regional samples.Following that,Intellectual Property Protection,Human Resources and Finance Management are developed as threshold variables to test the influence of Two-way Direct Investment on Innovation Capacity,then,possible explanations are given for the results.Finally,the results of this thesis are summarized,and some policy suggestions are put forward.The empirical research in this thesis shows that :(a)on the national level,both FDI and OFDI can significantly improve Innovation Capacity;and the cross term of FDI and Intellectual Property Protection has a positive impact on the improvement of Innovation Capacity,while the cross term of OFDI and Intellectual Property Protection has a negative impact on the improvement of Innovation Capacity.(b)on the regional level,due to the various degree of Openness,Government Supportiveness and Urbanization,the spillover effects of Two-way Direct Investment in regions are observed in different severity,being manifested as significant differences between the Innovation Capacity of foreign-investment-receiving areas and that of making-foreigninvestments regions: in eastern regions,FDI significantly promoted the development of innovation,while OFDI significantly promoted the development of innovation in the central and western regions,and in the central region,the cross term of FDI and intellectual property protection has a significant positive impact on Innovation Capability,while the cross term of OFDI and Intellectual Property Protection has a significant negative impact on Innovation Capability.(c)the national samples are tested by taking the degree of Intellectual Property Protection,Human Resources and Financial Management as threshold variables,and it is found that all the three variables have significant single threshold effect and Two-way Direct Investment will further improve the innovation capability when crossing the threshold.