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Effect of Foreign Direct Investment on Industrial Innovation: An Empirical Research on the Equipment Manufacturing Industry in China

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The 19th International Conference on Industrial Engineering and Engineering Management
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Abstract

With the advent of globalization, foreign direct investment (FDI) became an important means for a host country to obtain advanced technology and management experience. This paper analyzes the influence of FDI on industrial innovation in the equipment manufacturing industry in China. First, the study establishes a corresponding evaluation index system according to FDI factors affecting industrial innovation. Second, the paper demonstrates the performance of the main FDI factors through scores obtained from super-efficient data envelopment analysis (DEA), and distinguishes the degree of the effects of different factors through composite DEA. The results show that the intensity of market entry of FDI is the most significant factor in industrial innovation, whereas the impact of the technology spillover effect of FDI is the least significant. Finally, the study suggests countermeasures to improve FDI performance in industrial innovation.

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Acknowledgments

Sponsored by National Nature Science Fund Project (70773032), Humanities and Social Science Research Youth Fund Project of Ministry of Education in China (10YJC790027), Chinese Postdoctoral Science Foundation (20110491099), Heilongjiang Province Postdoctoral Fund Project (LBH-Z10112)

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Correspondence to Xu-sheng Chen .

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Chen, Xs., Wang, Hq., Zhong, Y. (2013). Effect of Foreign Direct Investment on Industrial Innovation: An Empirical Research on the Equipment Manufacturing Industry in China. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38427-1_158

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