The Influence Of Fdi On China's Technology Innovation Ability

Since the reform and opening up, China has gradually become the largest economycountry in the Third World Country, and China is one of the largest developing countries.With the consecutive years of sustained and rapid economic growth, China not onlyattracts the eyes of the world at the same time, but also sets an example and template forother developing countries in the Third World economic reform. The reason that Chinahas achieved so much economic success is the result of a series of internal and externalinteraction. With the rise of the economic base, human capital and the number of theperson with ability, the effect of the FDI on technology innovation is more and more.But even in the developed eastern region,FDI（Foreign Direct Investment） that have apositive impact at innovation capability is mainly reflected at a lower innovative utilitymodel patents. With the control of technology input from the SMEs,it’s difficult to bringthe core technology, even has the negative effect on the core technology innovation. So,the independent innovation is the only way to improve the overall innovation capabilityof our country.This article holds that China’s local enterprises can actually get what extent oftechnology spillovers which FDI brought about is finally depended on the absorptivecapacity of local enterprises. Therefore, the key of promoting FDI’s technologyspillovers is to create a fair competitive environment, improve the quality of ourworkforce, increase research investment, and the reasonable introduction of FDIaccording to local conditions and also attach great importance to technology digestionand absorption of re-innovation after the introduction. Moreover, we must know clearlythat "market for technology” can not earn core technology, so when we are in theselection of introducing advanced foreign technology to their digestion and absorptionof re-innovation, we must attach importance to cultivate the capacity of independentinnovation, and independent innovation is the only way to improve the overallinnovation capability of our country.