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Effect of Foreign Direct Investment on Industrial Innovation: An Empirical Research on the Equipment Manufacturing Industry in China

In: The 19th International Conference on Industrial Engineering and Engineering Management

Author

Listed:
  • Xu-sheng Chen

    (Harbin University of Science and Technology)

  • Hong-qi Wang

    (Harbin University of Science and Technology)

  • Yun Zhong

    (Harbin University of Science and Technology)

Abstract

With the advent of globalization, foreign direct investment (FDI) became an important means for a host country to obtain advanced technology and management experience. This paper analyzes the influence of FDI on industrial innovation in the equipment manufacturing industry in China. First, the study establishes a corresponding evaluation index system according to FDI factors affecting industrial innovation. Second, the paper demonstrates the performance of the main FDI factors through scores obtained from super-efficient data envelopment analysis (DEA), and distinguishes the degree of the effects of different factors through composite DEA. The results show that the intensity of market entry of FDI is the most significant factor in industrial innovation, whereas the impact of the technology spillover effect of FDI is the least significant. Finally, the study suggests countermeasures to improve FDI performance in industrial innovation.

Suggested Citation

  • Xu-sheng Chen & Hong-qi Wang & Yun Zhong, 2013. "Effect of Foreign Direct Investment on Industrial Innovation: An Empirical Research on the Equipment Manufacturing Industry in China," Springer Books, in: Ershi Qi & Jiang Shen & Runliang Dou (ed.), The 19th International Conference on Industrial Engineering and Engineering Management, edition 127, chapter 0, pages 1487-1496, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-38427-1_158
    DOI: 10.1007/978-3-642-38427-1_158
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