A Study On The Effects Of Foreign R&D Investment On Technology Innovation Ability Of Hi-tech Industry In China

In the era of knowledge economy, technology innovation is fundamental to thedevelopment of high technology industry, and R&D activity is the most important factor topromote enterprise technology innovation ability. Under the background of science andtechnology globalization, the ascension of technology innovation ability of our hightechnology industry not only relies on internal R&D investment, but also will be affectedby foreign R&D investment. In recent years, in addition to promote technology innovationability of our high technology industry, the constantly increasing foreign R&D investmenthas also brought huge competition and challenge to local high-tech enterprises in ourcountry. Therefore, having a correct understanding and reasonable evaluation of theinfluence that foreign R&D investment brings to technology innovation ability of our hightechnology industry has important practical significance.Based on the review of related literature, this article illustrates the motive and presentsituation of foreign R&D investment to our high technology industry, analyzes theinfluence mechanism, and gives a detailed description of the positive and negativeinfluence that foreign R&D investment brings to technology innovation ability of our hightechnology industry. At the same time, reference to predecessor’s research achievementsand based on Knowledge Production Function, this paper selects a explained variable(new product sales income), two explanatory variables (foreign R&D funds input, foreignR&D personnel input) and two control variables (internal R&D funds input, internal R&Dpersonnel input) to construct the empirical analysis model, uses16(1995-2010) years’branch line of panel data and branch area of panel data of high technology industry toconduct regression analysis, and gets consistent conclusions that foreign R&D investmentindeed puts positive influence on technology innovation ability of our high technologyindustry, but internal R&D strength is still the dominant factor, especially the internalR&D funds input. Finally, according to the former theoretical and empirical analysis, thispaper puts forward some corresponding countermeasures from two levels of governmentand high-tech enterprises, in order to promote foreign R&D investment to play a biggerrole in upgrading technology innovation ability of our high technology industry.