The Impact Of R&D Fund Investment On Green Technology Innovation In China

In the fifth Plenary Session of the 18th CPC Central Committee,the Communist Party of China clarified the concept,which is "innovation,coordination,green,opening and sharing".This concept is the key to lead China's future economy into a long-term and sustainable road.To establish a long-term sustainable economic development,on the one hand,it requires the transformation and upgrading of domestic industrial,including some new inherent motive mechanisms;on the other hand,it also needs to draw support from opening up,which will benefits from external international spillovers.As a result,it is necessary to combine" bring in "and“going out "policy with China's future" innovation,harmony,green,open and sharing" concept,so that it will create a more efficient,more sustainable technology innovation mechanism.It is not only the long-term sustainable development of our country,but also the social development during the“13th Five-Year”needs to create a more efficient way of green technology innovation.As a developing country,the lack of the green technology innovation is a terrible problem.Analyzing the influence factors of green technology innovation,in theory,is the key to establish the sustainable development and the innovation driven development;in practice,is the start to build new motive mechanisms during the“13th Five-Year plan".China is the world's second largest economy,green development and environmental protection is in line with international standard.With the green technology innovation being starting point,this paper will analyze the impact of foreign direct investment on China's green technology innovation and R&D investment,in order to provide some support for the development of green technology in China.Firstly,analyzing China's path of green technological innovation and OFDI,R&D fund investment's influence by literature analysis,and drawing China's green technology innovation route map on the basis of the previous findings.Secondly,making preliminary prediction of the relationship through OFDI,R&D investment and the China's green technology innovation by hypothesis analysis,and establishing the theoretical model of" The impact of R&D fund investment on green technology innovation in China--Based on the threshold effect of OFDI" based on the international C-H model and the threshold model.Finally,using China's panel data of 30 provinces in 2010-2014 and testing the threshold of model assumptions.Checking results by FLS and the interaction analysis method,and then come to the conclusion and suggestion.Through the analysis,it is found that domestic green technology innovation is affected by two aspects:domestic independent R&D and international technology spillover.In the process of independent innovation,R&D fund investment,technology spillovers of IFDI and environmental regulation has a significant positive impact on China's green technology innovation;in the process of international technology spillover,technology spillover of OFDI,trade spillover has a negative impact,but trade spillover effect is not significant.In the study,it is also proved that OFDI has a single threshold effect on the impact of R&D fund investment on green technology innovation in China.When the level of OFDI technology spillover is higher than a certain threshold,the positive impact of domestic R&D fund investment on green technology innovation will increase significantly.Therefore,following the "green" and "open" concept,coordinating of resources,environment and economic development,promoting China's green technology innovation,provinces should not only increase R&D fund investment,but also find the balance of OFDI and R&D fund investment,so that it will help the transformation in green.In the aspect of innovation,this paper first constructs the OFDI impact model based on the green technology innovation process.Using Cobb-Douglas production function,C-H international R&D spillover model and LP correction model to estimate China's economic development at the present stage,the theoretical model is more realistic,more suitable for the current situation in our country.Secondly,this paper explores the impact of OFDI on R&D of green technology innovation in China.From the two aspects of R&D investment,absorptive capacity and innovation ability,this paper constructs the conduction route model of domestic R&D of green technological innovation in China.The green technology innovation and OFDI are linked together with R&D funds,and on this basis,the transmission route of domestic green technology innovation is constructed.Finally,because most scholars' studies are prefer to the absorption capacity of R&D investment,so the academic research is in favour of R&D investment for threshold effect of OFDI,while ignoring OFDI reverse spillovers on the threshold effect of R&D investment funding,so this study has some innovations.In addition,some shortcomings of this study also exist,firstly,all studies were made on the basis of Chinese and foreign literature,due to the constraints of time and knowledge,there are some imperfect places in the theoretical and Empirical Analysis.Secondly,due to incomplete data in some provinces and cities,this paper deleted some provinces and cities' data,the empirical results can't fully explain the situation in all regions of China.Finally,the policy recommendations in this paper are drawn from the empirical analysis of the threshold,and whether it is applicable to the reality still remains to be verified.