Abstract: FDI has been traditionally considered as an important channel in the diffusion of advanced technology.Whether it can promote the technology advancement in China? This problem becomes the focusing point for Chinese scholars in recent years.The relationship between FDI and Regional Innovation Capability(RIC) is analyzed.It is found that the spillover effects of FDI are not significant as usually think.The impact of FDI on RIC is weak;the entry of FDI has no use for enhancing independent innovation capability.The research manifests that increasing domestic R&D inputs,strengthening the innovation capabilities and technology absorbency in domestic enterprises are the keys to improve RIC.

Key words: FDI, technology transfer, spillover effect, regional innovation capability