A Study Of The Impact Of China’s OFDI On Independent Innovation Capacity

As Science and technology independent innovation is a key factor for thecompetitiveness of the enterprise and an important way to increase the nationalcomprehensive strength, enterprises pay more and more attention to thedevelopment of science and technology independent innovation, constantlyseeking technology innovation method. At the same time, Since theimplementation of the strategy of "going out", China’s foreign direct investment(OFDI) has been growing rapidly, diversifying of investment area with purposesfor technology. At present, the technology obtained through foreign directinvestment has gradually become a means for improving the capability ofindependent innovation. So the main problems discussed in this paper are: howdoes OFDI affect the enterprise independent innovation, whether does China’sOFDI reverse technology spillovers really promote the independent innovationability of the enterprise, whether there is a difference between different industry’sOFDI spillover effects?which factors will affect the play of OFDI backwardspillover effects?Based on the researches and theories of OFDI and independent innovation,this paper analyzes mechanism of OFDI reverse spillovers affect on China’sindependent innovation. By using the panel data of30provinces from2004to2012, with R&D spillover regression model to test the OFDI reverse spilloversaffect on the independent innovation. Then by using the grey correlation analysis,it calculates the correlation between typical eight industry OFDI and independentinnovation. Lastly, financial conditions index was selected as absorptive capacityin domestic, this paper analyzed whether the domestic financial environmentreach the level to absorb OFDI spillovers. The research conclusion of this article has three points: Firstly, technologyspillovers through OFDI reverse capital have positive effects on our countryenterprise independent innovation; Secondly, according to grey correlationcoefficient analysis, OFDI spillovers is strong in some areas such as industry inscientific research and scientific research, technical services and Geologicalexploration industry and manufacturing, and some of the mining industry andhigh technology spillover effects of the information industry is weak. Thirdly,research shows that the financial environment has positive effects on adjustingthe relationship between OFDI reverse spillover and the regional independentinnovation ability; compared with China’s eastern and western financialenvironment, the study found that financial development degree of different willaffect absorption of OFDI spillovers.Based on the conclusion, this paper gives some useful advices: on one hand,the government needs to create more favorable environment to promoteenterprises investing abroad. On the other hand, referring to the industry, weshould optimize the industry distribution of OFDI. In addition, we also shouldimprove the domestic financial environment to absorb the OFDI reversetechnology and knowledge spillovers.