The Impact Of Two-Way FDI In Producer Services On Manufacturing Innovation Capability

With China’s reform has entered the deep water and the tough period,The level of China’s opening up to the outside world has been increasing,and the export-oriented strategy has been chosen to sustain its strength.For the first time in 2020,China proposed to effectively build a nodal hub for domestic and international double circulation,while already having the dual role of positioning as the world’s second largest foreign direct investment country and foreign direct investment country.In the background of international division of labor,China’s manufacturing industry has both opportunities and challenges.It is worth discussing how to realize the transformation and upgrading of China’s manufacturing industry by grasping the opportunity of "Made in China 2025".In selecting the research object,the article takes into account the above-mentioned characteristics of the times and starts from exploring how to use the international direct two-way investment channel to find a direction for the development of manufacturing innovation,and finally selects the two-way FDI in production services and its impact on manufacturing innovation capacity as the core of the discussion.The specific reasons include: first of all,the dual channel of international investment has the advantages of low cost and high efficiency;secondly,the two-way FDI technology spillover innovation effect in the productive service sector is of contemporary significance;finally,technology-and talent-intensive productive service industry is one of the areas with the highest concentration of innovation factors and international nascent market potential.The research content of this paper focuses on the emerging service sector,and gradually explores the association between the two-way FDI technology spillover effect and industrial innovation by combining the research results of previous literature,so as to enrich the research on the significance of the impact on industrial innovation development in China’s international direct investment theory.The specific research content is as follows:First of all,the article elaborates on the development of two-way FDI in the producer service industry and the innovation capability of the manufacturing industry,including the definition of concepts,the classification discussion of the index evaluation system,etc.Then,in the analysis of the status quo,the scale characteristics,growth trend,proportion analysis and industry distribution of my country’s producer service industry IFDI and OFDI are respectively elaborated.In the theoretical mechanism part,it cuts in with a brief introduction to the theory of international direct investment and the theory of industrial relevance,and discusses the influence channels and mechanisms respectively.Summarizing the discussion,this article discusses that there is a virtuous circle of interaction between IFDI and OFDI,and at the same time expounds the influencing factors of its innovation effect.Finally,in the empirical analysis part,based on the research ideas of the C-D production function and the L-P model,a basic model and a mediating effect model are established to explore the impact of my country’s producer service industry two-way FDI on the innovation capability of the manufacturing industry.This paper selects the provincial panel data from 2007 to 2019 to carry out the basic regression test and the intermediary effect test on the two-way FDI of Chinese producer service industry and the innovation capability of the manufacturing industry.Combined with the interactive development of the two-way FDI interaction item,it has an impact on the innovation capability of Chinese manufacturing industry.Factors were comprehensively tested and analyzed for regional heterogeneity.Based on the above,the research conclusions indicate that Chinese producer service industry IFDI has an inhibitory effect on the innovation capability of the manufacturing industry,and there is the possibility of being restricted by the threshold of other influencing factors.Producer service industry OFDI has a positive impact on manufacturing innovation capabilities.The interactive development of two-way FDI in the producer service industry basically has a positive effect mechanism on the innovation capability of Chinese manufacturing industry.Taking into account the two major influencing factors of R&D and human capital,the positive effect is more significant.That is,the two-way FDI interaction in Chinese producer service industry is good.This shows that the innovative development path of Chinese manufacturing industry needs the support of two-way FDI channels to a certain extent,rather than a single level.In response to this,this article talks about suggestion: We should continue to promote the healthy development of two-way FDI in the producer service industry,in order to bring more momentum to the improvement of the level of investment in technological innovation research and development in the manufacturing industry,and should continue to deepen the integration of international and domestic dual-cycle interaction.And we need to focus on increasing the level of manufacturing technology innovation R&D investment,and deepen the international and domestic dual-cycle interactive integration.