A Study On How To Utilize The FDI To Accelerate Technology Progress In Jiangsu Province

With market-oriented economic mechanism constant perfection, investment environment in Jiangsu province has been greatly improved. Vast foreign direct investment(FDI) has poured into Jiangsu province. FDI promotes economic growth, accelerates capital formation, expands social employment and makes a great contribution to the amplification of foreign trade scale and the optimization of foreign trade structure of Jiangsu province.Nowadays technology level is an important factor of country competition, it is the dynamo of economy development. This paper will explore the recommends of how to utilize the FDI to accelerate technology progress in Jiangsu province from government and enterprise angle respectively.In content, this paper firstly sum up many views related to FDI and host country's technology progress. Then the paper goes on to summarize fore research results on the factors affecting FDI to accelerate host country's technology progress, respectively from the perspective of FDI main body's will and ability to transfer technology, host country's macroscopic environment and technology absorptive ability. Then the paper makes empirical analysis on FDI and technology progress in Jiangsu province.Empirical analysis result indicates that FDI stimulates technology progress in Jiangsu province with its advanced technology. Because of some objective restriction , FDI technology spillover effect can not be brought into full use, contrarily FDI has brought negative effect on technology progress in Jiangsu province.Japan and Korea are typically successful countries which realize their technology progress through technology introduction. On one hand the two governments make positive policies to promote FDI to transfer advanced technology, on the other hand two governments pay more attention to reinforce their own technology ability promotion. They put mass of manpower , financial resources and material resources on education and R&D to develop human resources. They guided FDI by estate policy and take strict management. Based on the above analysis, this paper put forward some pieces of advice respectively from the angle of government and enterprise. Government should pay more importance to education and R&D, strengthen estate policy orientation and powerful protection on property rights, amplify medium service and so on. Enterprise should pay more attention to digest and absorb the introduced technology, increase input to R&D, cultivate enterprise culture to pursue technology progress.