Research on the interaction between foreign direct investment and localized industrial cluster

In order to study the interaction of foreign direct investment and the localized industrial cluster in China, and to strengthen the technology innovation capability, based on relative references, qualitative analysis is employed to analyze the interaction mechanism of foreign direct investment (FDI) and the localized industrial cluster. With relevant econometric model-building methods, a model of interaction situation between foreign direct investment and the localized industrial cluster is established; some relative data from high tech industrial clusters is adopted; utilizing the methods of stability test, co-integration test and least square technique, empirical analysis is employed to analyze the interaction system of foreign direct investment (FDI) and the localized industrial cluster. At last, some empirical conclusions are reached.