The Influence of Foreign Direct Investment on the Technical Innovation Ability of Northeast China

Abstract

Based on the panel data of three provinces in northeast China from 2005 to 2014, this paper examines the impact of foreign direct investment (FDI) on the technological innovation ability of the three provinces in northeastern China. The empirical results show that FDI has a positive impact on the technological innovation measured by the patent application in the northeastern region, and the influence on each province is different. The growth of 1 unit on FDI in Liaoning Province will promote the increase of 0.44 units of patent applications; Heilongjiang Province for each additional 1 unit of FDI will promote 2.15 units of the increase in patent applications; the investment in human recourse and capital in Liaoning Province has a significant effect on the number of patent applications. The amount of import and export in Jilin Province has a positive effect on the number of patent applications.