2008•Shoudu Jingji Maoyi Daxue xuebaoRequires access

FDI Market Power:Effective Incentives of Domestic Firm Technology Innovation

Xing Hai-ling

Abstract

This paper focuses on the incentives of the domestic technology innovation.The author makes an a- nalysis of some typical manufacturing industry,in which there is more FDI flow.On comparison,the author finds an inspiring in domestic firm innovation performance following a wave of FDI.Besides providing the technology dif- fusion,flowing-in FDI promotes the domestic firm to make innovation.It shows that the policy is more preferable, which emphasizes that the fair competitive market is an important factor to improve the capability of domestic firms.

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Key concepts: Incentive, Foreign direct investment, Business, Industrial organization, Domestic market, Technology gap, International economics, International trade