The Impact Of Localization Policy On Independence Innovation ——The Evidence From Joint Venture Automobile Enterprises

China’s economy is highly dependent on the automotive industry,the development of the automobile industry plays an important role in China’s economic development and social stability.In the mid-1980s,when the technology level of China’s automobile industry was extremely weak,our government formulated a policy of attracting foreign investment.The joint venture automobile enterprises have begun to develop rapidly,which has greatly promoted the growth of China’s automobile production and sales.However,the establishment of joint venture automobile enterprises has not significantly improved the technical level of China’s automobile industry,and auto parts still rely mainly on imports.Therefore,in order to promote China’s auto companies to digest and absorb foreign advanced technology,the localization policy came into being.The localization policy is generally a measure for developing countries to protect their own naive industries and enhance their independent innovation capabilities.The implementation of the localization policy seemed to have promoted the development level of China’s automobile industry,but the actual effect is rarely evaluated by scholars.However,the evaluation of the effect of the localization policy,on the one hand,can test the effectiveness of the policy;on the other hand,can provide reasonable suggestions for the adjustment of industrial policies by the Chinese government.Therefore,this thesis focus on the "Management Measures for the Import of Auto Parts Which constitute the Characteristics of the Whole Vehicle"（follow-up referred to as "the whole vehicle approach"）promulgated in 2005,using the Differences-in-Differences method to test the effect of localization policy on independent innovation of automobile industry.This thesis takes the evaluation of the impact of the "the whole vehicle approach" on the number of invention patents of automobile enterprises as the starting point,selects the automobile enterprises as the "treatment group",and the agricultural vehicle enterprises as the"control group",using the Differences-in-Differences method,focusing on the changes in the number of invention patents of automobile manufacturers after the implementation of the localization policy in 2005.It is found that the localization policy has significantly increased the number of invention patents of automobile enterprises.In order to further study whether the localization policy can better increase the number of invention patents of joint venture automobile enterprises,this thesis splits the sample of automobile enterprises into samples of joint venture automobile enterprises and samples of local automobile enterprises,which are compared with the samples of agricultural vehicle enterprises again.Based on the empirical results,compared with local car enterprises,the localization policy has more effectively improved the number of invention patents for joint venture automobile enterprises.Therefore,the thesis concludes that the localization policy implemented in 2005 can effectively promote the improvement of the independent innovation capability of China’s auto enterprises,and are more able to promote the independent innovation capability of joint venture automobile enterprises.Through the empirical analysis,this thesis proves that the localization policy of the automobile industry can promote the improvement of the independent innovation capability of our automobile enterprises to a certain extent.However,with the development of the automobile industry and the changes of the international environment,the automobile industry policy should be continuously adjusted.Finally,based on the empirical results obtained and the development status of the automobile industry,this thesis puts forward some suggestions for China’s automobile industry policy.