Empirical Study on the Relationship between Foreign Direct Investment and Independent Innovation Capacity of China Equipment Manufacturing

Since the 1990s, with the policy of open and reform implement by Chinese government and join in World Trade Organization (WTO), China has a great development in manufacturing and technology. Equipment manufacturing industry has a very important position and characteristics in country's defense strength and economic development. The foreign direct investment (FDI) of Multinational Company (MNC) brings great impact and competition pressure on Chinese equipment manufacturing enterprises. This paper attempts to use empirical method to validate the relationship between FDI and the independent innovation capacity of Chinese equipment manufacturing. It is found that the high capacity of independent innovation the more FDI of MNC, but impact of FDI on innovation capacity is not obviously. Chinese enterprises may gain international scientific and technological resources and facilitate independent innovation.