The Effects of FDI on Technological Innovation Capacity:Evidence from Chinese Manufacturing Industry

Based on the data from 35 sectors of manufacturing industry from 2001 to 2006,this paper investigates the effects of FDI on technological innovation of China domestic enterprises.Results show that,for the whole industry,the FDI effects are not obvious.However,for labor intensive sectors,while the FDI still contributes little to the improvement of technological innovation of firms, experts and technicians take very important parts for firm's improvement of technological innovation.That means that the improvement of technological innovation of these firms is not highly dependent on expenditures on science and technical activities.On the other hand,for capital and technology intensive sectors,FDI bring obviously positive effects to the improvement of technological innovation of firms.The improvement of technological innovation of these firms is highly dependent on human resources and expenditures allocated on science and technical activities