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.