Research On The Influence Of FDI To Technology Innovation Of Chinese Manufacturing

Technology innovation play an important role to improve the enterprise's competition ability and improve their productivity, then, enhanced the national competition ability. As the world's third largest country in attract FDI, it is important for us to investigate whether FDI influence the technology innovation. As the main body of influence, the industry department especially manufacturing, technology innovation effects were more apparent because the multinational companies participate.The paper first discussed the influence of FDI to technology innovation mechanism, FDI mainly use three forms to influence the technology innovation, include the technology transfer, technology diffusion and technology create. FDI affect the host country's innovation through the demonstration effect, competition effect, vertical correlation effect, human capital flow and innovation conglomeration effect. In the empirical analysis, studied the effect of FDI to the innovation output effect firstly, then, discussed the main channel that FDI affect manufacturing technology innovation. Different foreign participation degree, the effects of FDI to the industry technology innovation are also different. The empirical analysis results show that FDI in manufacturing enterprise and domestic manufacturing enterprises are all have a faint simulative effect on technology innovation. In low foreign participation degree industry, FDI mainly through the demonstration effect to promote domestic enterprise technological innovation. In high foreign participation degree industry, market competition is the domestic factor for enterprise technology innovation. The foreign capital enterprise mainly through the competition effect to promote the domestic enterprise's innovation, foreign enterprise in the influence of technology innovation process, exist two-way demonstration effect. The investment of human capital is the most important factor to guarantee domestic enterprise technology innovation. According to the empirical results, finally, this paper put forward both the police on attract multinational corporation's investments and improve the enterprise innovation ability.