Foreign Direct Investment and its Effect on Self-Reliant Innovation in Jiangxi

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In this paper, we attempt to inspect the status of Foreign Direct Investment (FDI) and its spillover effect on self-reliant innovation capability in Jiangxi province. Based on production function calculation, correlation coefficient between logarithm FDI and logarithm self-reliant innovation (sales revenue of new products) is -0.080. It indicates that the growth of FDI plays no or even negative effect on the growth of self-reliant innovation empirically. The reasons are mainly: (1) too many influence factors which affect the growth of self-reliant innovation disturb the model explanatory ability; (2) the influence of FDI is much less than of R&D labors and expenditures inputs. According to empirical research, the reasons for inefficiency FDI are mainly from two aspects: (1) FDI inward Jiangxi is mainly sourcing from undeveloped and developing countries (or regions) but not developed countries. (2) Technical spillover effect of FDI is performing under capacity for economic complexity and/or development threshold.

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Periodical:

Edited by:

Zhenyu Du and Chengbin Li

Pages:

84-89

DOI:

10.4028/www.scientific.net/AMR.281.84

Citation:

X. H. Li and Y. G. Yu, "Foreign Direct Investment and its Effect on Self-Reliant Innovation in Jiangxi", Advanced Materials Research, Vol. 281, pp. 84-89, 2011

Online since:

July 2011

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$35.00

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