The Impact Of FDI On The Innovation Ability Of China’s Seed Industry

Seed industry,as a national strategic and basic core industry,vigorously developing is of great significance to establish and build agricultural modernization,promote rural revitalization,and further improve the national security system.In recent years,the country has continuously issued favorable policies on seed industry,and has repeatedly promoted the development of seed industry to the height of national strategy.Building a modern seed industry system is the key direction for a period in the future.The seed industry modernization should be market-oriented.With the continuous opening and deepening of the reform of the seed industry market,China’s seed industry market has become the focus of attention of multinational seed companies with its considerable market size,huge demand for seed use,cheap production resources and other advantages.As foreign enterprises enter the Chinese market and bring capital,advanced technology and marketing experience,they are also scrambling for seed resources to occupy the market share of China’s seed industry.Therefore,under this research background,the question to be discussed in this paper is put forward: What impact does the inflow of foreign capital have on the innovation capacity of China’s seed industry? How to absorb the spillover effect of foreign capital more effectively on China’s seed industry and transform it into the R&D and innovation capacity of individual enterprises? The discussion of these issues has important practical significance for China to grasp the safety and sustainable development of seed industry.First,this paper summarizes the domestic and foreign research on FDI technology spillover effect and independent innovation effects.Then,it elaborates on the theoretical basis and innovation mechanism of FDI around the structure and content of the paper.Besides,it analyzes the current development status of China’s seed industry market,the situation of seed enterprises,and the changing process of foreign investment utilization in the seed industry.Based on the current situation and innovative characteristics of China’s seed industry,this paper constructs a theoretical model of the impact of FDI on the innovation capacity of the seed industry.The model first estimates the impact of FDI inflows on the seed industry innovation capability,and then adds different regulatory variables to observe the specific perspective of FDI.In the empirical study,this paper uses the microlevel data of 41 seed industry listed companies from 2011 to 2021 to test the effectiveness of the model in seed industry enterprises’ innovation capability through panel data regression,regulatory effect analysis and other statistical methods.The study found that foreign capital has a positive impact on the innovation ability of seed enterprises,and the promotion effect gradually increases with time.The regulatory effect test shows that R&D capital has a positive regulatory effect on the improvement of enterprise innovation,while labor quality and R&D personnel investment have no regulatory effect.The study also found that the larger the scale,the stronger the absorptive capacity,and the state-owned seed enterprises,the more obvious the improvement of foreign investment in innovation capacity.Finally,in view of the empirical results,this paper comes up with corresponding suggestions on how to use foreign direct investment to improve the innovation ability of China’s seed industry in terms of policies,laws,enterprises,talents,etc.The conclusions of this paper have important policy implications for promoting the long-term sustainable development of China’s seed industry enterprises and industries.