Research On The Relationship Of Foreign Direct Investment And The Independent Innovation Of China's Enterprises

Since the beginning of reform and opening policy, China has become one of the largest countries of attracting foreign direct investment (FDI) in the world, due to its positive policies. Currently, FDI has become an important force in promoting China's economic development. Has FDI promoted technological innovation of the Chinese enterprises? Currently there are some academic controversies about it; some scholars believe that the "market for technology" strategy since the 1990s is a failure in our country and the use of FDI has rejected the independent innovation of our enterprises; however some other scholars think that there is not conflict between the use of foreign capital and our own innovation. Therefore, the attitude of how to view and evaluate the relationship between FDI and independent innovation will affect China's FDI policies in future.Using the 1999-2005 industrial panel data as an example, the paper analyzed empirically the effect of FDI to the patent applications and input of innovation of Chinese enterprises, and get the conclusion that FDI could promote the innovation of our enterprises; However the paper validated that the promotion of FDI had become weaker and weaker during the subsequent analysis of time levels; The case study reinforced the above conclusion, too. So this paper concluded that: FDI has become an important force in promoting China's economic development. It is an unrealistic job to talk about innovation of China's enterprises if we neglect the FDI, However, the actual FDI to China We should attach importance to existing promotion from FDI to innovation of enterprises, however, more to the increasing restraintTherefore China should continue to strengthen the opening policy and improve our investment environment actively. We should exploit the good factors and avoid the bad ones in the course of attracting FDI and pay attention to the quantity of FDI. The government should play the more leading role in the innovation of the enterprises that should enhance the status of the main innovations in the national innovation system. And we should keep the unanimous goal of China's economic development strategy and improving the ability of independent innovation along with using FDI ,and increase China's comparative advantage benefit from the open economy...