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Journal of Beijing Normal University(Social Sciences) ›› 2018, Vol. 0 ›› Issue (3): 130-143.

• Economy • Previous Articles     Next Articles

Could the Chinese Service Firms Promote Their Innovation Performance from the FDI in Service Industry?——Empirical Evidence from Survey Data of Service Firms in 2008 and Patent Micro-Data

TANG Yi-hong, YUFeng, WANG Xiao-yan   

  1. School of International Trade and Economics,Central University of Finance and Economics,Beijing 100081,China
  • Received:2017-10-27 Online:2018-05-25 Published:2019-06-21

Abstract: Innovation is the main driving force to promote long-term development of enterprises.In the context of innovation-driven development in China,it is of great significance to explore whether service industry FDI promotes service enterprise innovation.By matching service firm data of the China's second economic census in 2008 and patent micro-data,the 64436 service firm data samples are obtained.With firm patent number as proxy of firm innovation and distance between firm and the coastline as Instrument Variable,the researchers analyze the effect of service FDI on service firms' innovation and the underlying mechanism.The results demonstrate that FDI mainly promots innovation performance of Chinese service firms through the learning effect and the competition effect.From the perspective of the source heterogeneity of FDI,the FDI from Hong Kong,Macao and Taiwan with the non-technology advantage promotes the firm innovation mainly through the learning effect and the competition effect,while the FDI from western countries with the technology advantage mainly inhibits the firm innovation through the competitive effect.From the perspective of institutional heterogeneity of region in China,in the region with higher level of marketization and to intellectual property protection,innovation spillover effect of FDI is more significant.Therefore,gradual opening of FDI in service industry from Hong Kong,Macao and Taiwan to the western countries and enhancing the competitiveness and absorptive capacity of service enterprises are to reduce the competition from external environment and increase the learning effect for the positive effect of FDI on firm innovation.In addition,speeding up regional marketization and improving regional intellectual property protection would enhance innovation spillover effect of service FDI.

Key words: FDI in service industry, service firm innovation, source heterogeneity of FDI, sub-national institutional heterogeneity

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