Spillover Effects of FDI,Capability of Independent Innovation and Regional Industrial Structure Optimization:Dynamic Panel Data Analysis of the Yangtze River Delta Cities

The present research on the FDI influence of the regional industrial structure usually ignores the capability of independent innovation,which causes the deviation of the estimated spillover effects of FDI.Based on the empirical data of 22 cities in the Yangtze River Delta region from 2002-2009,dynamic panel data estimation is used.The results demonstrate that the estimated spillover effect of FDI shows the negative influence on regional industrial structure optimization as a whole,but the capability of independent innovation has a positive effect on the upgrading of industrial structure.After the model introduces cross terms,results show FDI promote the capability of independent innovation through technology spillovers and then optimize industrial structure.Their synergistic effect is significant.Enhancing the capability of independent innovation and the technology absorptive of local enterprises will be the key to the future development of the Yangtze River Delta region.