Research On The Effect Of Technological Innovation Of China's Direct Investment In Developed Countries

Since the 1990 s,the trend of economic globalization has been strengthened and international economic exchanges have become increasingly close.With the rapid development of outward foreign direct investment,the reverse technology spillover effect has been paid more and more attention.Since China's entry into the WTO,the level of its opening-up to the outside world has been constantly raised.With the deepening of the national "going out" strategy,Chinese enterprises began to accelerate the deployment of overseas markets.OFDI has been growing rapidly,with China's foreign direct investment flows reaching US $136.91 billion in 2019,ranking second in the world for many years.In 2002--2019,China's foreign direct investment rose 50 fold,with an average annual growth rate of 26%,well above the global average.Through direct investment to developed countries,enterprises can obtain more advanced technology,human capital,management experience and other R&D resources,then transferring them back to their home countries to achieve technological progress in their home countries.Therefore,foreign direct investment has become an important way for China to participate in economic globalization,and to break through the technical bottleneck,enhancing China's position in the global value chain.Technological progress and knowledge accumulation play an important driving role in a country's economic growth.In the era of knowledge-based economy,only a country with strong innovation ability can enhance its core competitiveness.After years of rapid economic development,the Comprehensive National Power has been significantly strengthened.However,there is still a gap with developed countries in the indicators of scientific and technological innovation,such as R&D investment intensity and patent ownership of per10000 person.In the new normal period of economy,it is urgent to improve the ability of technological innovation and realize the transformation from factor-driven to innovation-driven,so as to effectively improve the quality of economic growth.As an export-oriented engine under the new normal state of economy,OFDI should fully release the great potential of reverse technology spillover effect.Developed countries are origin of the advanced technology.This paper focuses on the innovative effects of Chinese direct investment in developed countries.Therefore,this paper focuses on the effects of China's direct investment in developed countries on technological innovation,makes an empirical analysis from the perspective of macrocosm and microcosm,to answer the question of how China's direct investment in developed countries affects technological innovation and what factors affect it,and to seek new impetus for the development of the domestic economy,it is of great significance to guide Chinese enterprises to upgrade their technology through overseas investment.This paper adopts the methods of Empirical Research,Comparative Analysis,Canonical analysis and follows the research ideas of theoretical basis,current situation analysis,mechanism analysis,empirical analysis and conclusion suggestion,the effect of China's direct investment in developed countries on technological innovation is studied in detail.From the point of view of structural arrangement,this paper is divided into seven chapters.The first chapter is the introduction,which mainly introduces the background and significance of the thesis,the research status at home and abroad,the main content of each part,the research methods and the main innovative points and deficiencies.The second chapter is the theory summary,clearly defines several key concepts,elaborates the foreign direct investment theory of developing countries,the technology progress,the technology innovation theory and the international technology spillover theory as well as the theory of firm Heterogeneity.The third chapter is an overview of China's direct investment in developed countries,including the overall characteristics of China's foreign direct investment,the current situation and the new circumstances of China's direct investment in developed countries.The fourth chapter is the mechanism and influencing factors of OFDI to promote innovation in home country.It elaborates the mechanism from micro,medium and macro levels,and the influencing factors from home country and host country.Finally,it sets Huawei Company as an example for case analysis.The fifth chapter carries on the Empirical Analysis from the macroscopic angle of view on the OFDI's technological innovation effect of China's investment in the developed countries,including the view of home country's absorption capacity and the view of host country.The analysis of home country absorptive capacity includes general test and threshold characteristic test.Chapter six analyzes the technological innovation effect of OFDI from microcosmic perspective,expounds the characteristics of OFDI from Chinese enterprises to developed countries,and analyzes the Heterogeneity of enterprises.Then the paper empirically tests the effect of OFDI on promoting technological innovation,including the initial test,the dynamic test,the heterogeneous investment motivation test and the heterogeneous entry mode test.The seventh chapter is the conclusion and the suggestion,summaries the research conclusion of the whole article,and proposes the suggestion.This paper draws the following conclusions:(1)China's foreign direct investment(FDI)is developing rapidly,but there are some problems in investment industry and location distribution.China's outward investment is highly concentrated,with most of its investment in low-and medium-tech industries,unbalanced geographical distribution,low proportion of investment in developed economies,but rapid and regionally concentrated investment in developed countries.In recent years,developed countries strengthened the supervision of foreign investment,Chinese enterprises' OFDI face greater resistance.(2)The mechanism of technological innovation in home country for China's investment in developed countries is mainly conducted through three levels: micro-level of enterprise,medium-level of industry and macro-level of country.(3)Empirical test from a macro perspective,the result shows that the promotion of OFDI to domestic technological innovation in developed countries by China is significantly positive,much higher than that in developing countries.There is a threshold effect on the absorptive capacity of OFDI to promote technological innovation.The technology gap,the level of economic development,the institutional environment,the R&D expenditure and the technological innovation capability of the host country are all positively correlated with the reverse technology spillover effect of OFDI in developed countries.(4)Among the manufacturing listed companies in China's A-share Market,40 percent are invested abroad,of which 61 percent are invested in developed countries.In three aspects of R&D Investment,profitability and innovation capability,enterprises invested in developed countries are better than those invested in developing countries,much better than those have not invested abroad.(5)Empirical test from the perspective of enterprise micro,the double difference method based on propensity score matching(PSM-DID)was used to examine the promotion of OFDI on technological innovation in developed countries.The results show that the promotion effect is significantly positive,but the advantages of the technological innovation effect of technology-seeking enterprises are not obvious.This means that there is limited access to advanced technology from developed countries.The dynamic effect shows an "inverted U-shaped" trend.The enterprises adopting greenfield investment mode have obtained significantly higher technological progress than those adopting M&A investment mode.