The analysis of FDI's impact on regional innovation capability of China's provinces and cities

In this essay, the panel data is China's 30 provinces and municipalities (excluding Tibet) from 2000 to 2008; independent variables are the gross domestic product (GDP) of per capita, foreign direct investment (FDI), research costs, the technology market turnover; patent applications is the measure of regional innovation capability. This essay uses the methods of econometric analysis analyzing the variables' impact on the regional innovation capability, and focuses on researching the FDI's role of regional innovation capability. The results show that, for a part of the provinces and cities, FDI has a effect of technology spillovers, enhancing regional innovation capability. But for other provinces and cities, FDI doesn't mean that. As a result, we can find that FDI's regional innovation capaci ty for all the provinces and cities is differences.