FDI Technology Spillover Effect On The Area Of Technological Innovation

For China, the three decades of economic growth, contributed to the policy ofreform and opening up. Go out the idea of bringing in after the implementation of theintroduction of a large number of international capitals, market-oriented reforms areconstantly moving forward. In this background, the effective use of technologyspillover effect of foreign direct investment (FDI) in developing countries more and isparticularly important. Later discovered to organize and observation of existingresearch and literature, either support or reject the conclusions of FDI technologyspillover are therefore more difficult to get a positive or negative result accordingly. Inaddition, from the perspective of observation and research, Most of these documentsto examine human capital, financial development and trade opening under theconditions of foreign direct investment spillovers, With respect to the angle of thesestudies, the control variables of the market environment has not been given sufficientattention, and Scholars modeling, the market environment will usually be ignored.Under such circumstances, you may not be able to accurately estimate thecontribution of FDI on the host country; therefore, it cannot really find the mechanismof action of the FDI technology spillover effect. China’s economic development hasbeen uneven in different geographic area, around the level of the market are not thesame? Thus, in the study of regional innovation capability, in order to analyze the roleof market-oriented foreign direct investment and innovation activities during theinteraction of the modeling need to take into account market factors. In view of this,we answer the following questions: Market factors and FDI on regional technologicalinnovation what kind of impact? In technological innovation, market-oriented andFDI has what kind of relationship?In this paper, China’s29provinces and cities in2006-2011(excluding Hainan,Tibet) panel data, FDI technology spillover mechanism in the process of China’s market-oriented reforms through the establishment of the panel threshold model testof the threshold effect, The threshold test results further more detailed analysis. Theempirical results showed that:(1) In the market-oriented factors, the impact of foreigndirect investment on regional technological innovation capability "double thresholdeffect";(2) In the case of control of the market-oriented factors, the impact of foreigndirect investment on regional technological innovation capability of most provinces isnot significant;(3) the improvement of the market environment can promote thetechnology spillover effect of FDI, FDI can also promote the improvement of theenvironment of the domestic market, but this interaction only the area of the lowerlevel of the market is most obvious.Finally, on the basis of this conclusion, further studies drawn revelation:(1)Domestic FDI to achieve technological innovation may be present;(2) China’s FDI toachieve technological innovation difficult;(3) In this context, how to coordinate thegovernment’s macroeconomic regulation and control, as well as to further deepen themarket-oriented reform, the importance of coordination of regional development ofmarket economy to achieve technological innovation.