Abstract:      Innovation factors and foreign direct investments are the two key factors affecting the innovation capability of China′s high-tech industries. The high-tech industry is among the strategic leading industries with high knowledge density, high innovation and high profitability. Innovation factors (mainly R&D personnel and R&D capital, etc.) are key strategic resources to support the sustainable development of high-tech industries, that promote the steady implementation of innovative national strategies and China′s high-tech competitiveness. Under the State′s macroeconomic regulation and control, local governments in China have gradually lowered the threshold of household registration and actively promoted the "Internet +" process. The R&D elements have become increasingly mobile across regions, prompting high-tech industries to enter into an era of open innovation with free movements of innovative elements as the dominant feature. Since the reform and opening up, the use of foreign direct investment has become an important national strategy for China to promote economic and social development. FDI inflows contain capital, advanced technology, and management experience, and make heavy investments in high-tech industries. In the high-tech industry, FDI has significant competitive advantages. China′s high-tech industry has a large proportion of foreign investment. FDI inflows have a direct effect on high-tech industry innovation, and it may also affect the improvement of innovation capabilities by regulating the relationship between cross-regional flows of innovation factors and high-tech industry innovation. The answers to the above questions have reference value for the introduction of foreign investment by the government to improve the innovation capability of provincial high-tech industries.
   This paper has two research features. First, taking provincial high-tech industry as an example, from the perspective of dynamic flow of innovation factors, this paper discusses the impact of innovation factor flow on innovation capability of high-tech industry, and considers the positive cumulative continuity of innovation capability and dynamic space abandonment mechanism. Second, the existing research on innovation capability of FDI and high-tech industry mainly regards FDI as innovation capability of high-tech industry. The explanatory variables of new capabilities, without considering the macro background of China′s implementation of innovation-driven transformation of new and old kinetic energy, FDI may have a moderating effect on the relationship between R&D inflow and local high-tech industry′s innovation capabilities. Third, most of the existing studies use the common panel model for empirical analysis. This paper considers spatial dependence and uses the spatial measurement model and threshold panel model to discuss the impact of innovation factor flow on provincial high-tech industries and the regulatory role of FDI inflow, and further consider the possible optimal intensity range of FDI inflow. The follow-up arrangement of this paper is as follows: the second part is the model construction, the third part is the empirical results and analysis, the fourth part is for further discussion, and the fifth part is the main research conclusions and implications.
   In order to conduct an in-depth analysis of the impact of innovation factor flow on innovation capability of provincial high-tech industries and the regulatory role of FDI inflow embedded in it, this paper uses 30 provincial panel data of China from 2004 to 2016 to carry out empirical analysis. The results show that: (1) innovation factor flow, FDI inflow and innovation ability of provincial high-tech industries have significant spatial correlation, provincial high-tech industries have significant spatial correlation. Industrial innovation ability has significant positive cumulative spatial effect and path dependence, R&D personnel flow and R&D capital flow have significant leverage effect on provincial high-tech industry innovation ability, and R&D personnel flow has stronger innovation effect; (2) FDI inflow has a positive effect on the relationship between R&D personnel flow and provincial high-tech industry innovation ability, and has a positive effect on the relationship between R&D capital flow and provincial high-tech industry innovation capability. The endogenous evolution mechanism of FDI regulation has a double threshold effect. When FDI is below the first threshold, its regulation effect is not significant and fails to pass the significance test level. After crossing the first threshold, the regulation effect of FDI between the flow of two types of innovation factors and the innovation capability of provincial high-tech industries is significantly positive; but after crossing the second threshold, its effect intensity has weakened to some extent.
   This study contributes in providing managerial implications for high-tech industry innovation capacity promoting policies aimed at fully utilize the inter-regional flow effects of innovation factors and the FDI′s regulatory role. First, based on the inter-regional flow of innovation factors, accelerating the development of high-tech industries is the key path for developing countries to play their comparative advantages in the context of strategic transformation. China′s high-tech industry should pay more attention to the improvement of independent innovation capability and the expansion of new product market. Through deepening the reform of household registration system, lowering the access threshold of science and technology financial market, focusing on the national macro-strategy, we should improve the system and mechanism of the flow of innovation factors among regions, especially encourage the free flow of R&D personnel and expand the radius of innovation spillover, so as to give full play to the leverage effect of the flow of innovation factors among regions and promote the sustainable development of China′s regional high-tech industries and promote inclusive growth of regional economy. Second, we will continue to implement the national strategy of "market for technology" to promote the breakthrough of "low-end lock-in" in China′s backward high-tech industries. When introducing FDI, more attention to the combination of R&D personnel and the inter-regional flow of R&D capital should be paid. The scale of FDI ought not to be blindly pursued, but those in different regions should be regulated and controlled and the quality of FDI be closely watched. While introducing foreign capital, the free flow of innovation factors among different regions should be speeded up, so as to better play the complementary effect of the two.

Key words:  innovation factor flow, FDI, spatial measurement, nonlinear feature