Comparative Research On The Regional FDI Technology Spillover Effects Of China

One of the important targets of attracting foreign investment is to get the technology spillover and enhance self-innovation. Imitating and innovating effectively are the important channels of realizing the FDI technology spillover. This paper analyses the advantages of imitative and innovative strategies and the feasibility for developing countries, studies the realist mechanisms and constraints of imitation and innovation under the conditions of the FDI spillover, finally, the practical significance and the necessary preparations of Chinese imitation and innovation. Both the Yangtze River Delta and Pearl River Delta are most economically developed regions of China and the most concentrated area of FDI. The information shows that around 60% of foreign capital inflows goes to these two regions. Therefore, objective analysis, evaluation and comparison of these two areas are not only help to understand the effect of foreign investments in these two areas, but also help us to make policies.From the view of theory of FDI technology spillovers effect, taking the function mechanism of FDI technology spillovers effect as the clue, synthetically considered characteristic factors influenced spillovers, such as the quality or source of FDI, different area development levels and different industry development levels and so on, this paper will analyze FDI technology spillovers effect in China, put forward the Countermeasures about how to promote the effect in Wuhan according to it.Firstly, this paper introduces main FDI spillovers effect theory, recent studies of spillovers, and factors of spillovers incidence. Secondly, this paper uses intra-area and intra-industry data to analyze the incidence of FDI spillovers in China according to local enterprise's study and imitation in host countries and competition between FDI and local enterprises. Then, based on these influence factors, such as the quality or source of FDI, different area development levels and different industry development levels and so on, this paper further analyses the incidence of FDI spillovers in China. Finally, this paper concludes how to promote FDI spillovers and puts forward some policy suggestions. Through these studies, we have obtained some conclusions. Firstly, there has a strong FDI spillovers effect in China in general. Secondly, FDI provides the channel of technology transfer rather than technology spillovers itself. Spillovers effect is not an automatic consequence of FDI. Thirdly, FDI from different source has different spillovers in different area or industry. With the growth of local enterprise, FDI from Hong-Kong, Macao and Taiwan has a more faint spillover potential, and FDI from other foreign countries has a growing spillovers effect. These two types of FDI also have a different spillovers effect in different area in our country. From the view of different industry, technology gap between local enterprise and FDI is an important influence factor in FDI incidence.