OFDI,political Connection And Technological Innovation Of Private Enterprises

After 40 years of reform and opening up,the "Going Global" strategy has made remarkable achievements,and the "Belt and Road" initiative has accelerated the pace of Chinese companies’ foreign direct investment.Innovation is the foundation of enterprise development.China has promoted the strategy of "Innovation leads development" to the national strategic level.Based on China’s foreign direct investment and innovative development,the thesis uses all the A-share private listed companies from 2012 to 2016 as the sample,while excluding the financial industry sample,and uses empirical research methods to examine the impact of foreign direct investment on private companies’ technological innovation.At the same time,based on the imperfect institutional background of China’s formal system,the political connection is put into the research model to study the role of political connection between foreign direct investment and technological innovation.The study found that foreign direct investment promotes the innovation output of private enterprises and enhances the technological innovation capabilities.At the same time,foreign direct investment also improves the quality of technological innovation;In the relationship between private enterprises’ foreign direct investment and technological innovation,political connection plays a positive role in regulating.Among them,the political connection of government officials has positively adjusted the relationship between foreign direct investment and technological innovation,while the political connection of the representative committee has an insignificant moderating effect.Further research has found that OFDI has a positive impact on various types of innovation.However,the positive regulatory effect of political connection only exists at a higher level of technological innovation;at the same time,OFDI promotes technological innovation by increasing R＆D investment.