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| The Mechanism and Empirical Study on the Influence of Foreign Direct Investment to China 's Innovation Capability |
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Abstract Using the 2003-2015 provincial panel data of 30 provinces in China,in the basis of general analysis of the impact of foreign direct investment in innovation mechanism,with reference to international R&D spillovers method proposed by Potterie and Lichtenberg,using panel threshold model empirical test of the relationship from the perspective of technology gap.The results of the study show that OFDI can enhance the innovation ability of a country through the R&D results feedback effect,the M&A integration effect and the industry before and after the correlation effect.The empirical results show that OFDI reverse technology spillovers in different thresholds,The ability to enhance the innovation capacity presents a significant "Inverted U" feature,and only in the optimal technical gap can play its maximum effect.Finally,based on the conclusions of the mechanism and empirical research,the paper puts forward the corresponding policy suggestions from the government and the enterprise.
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