Research Of Technology Spillover Effects From FDI

The last two decades has witnessed the drastic inflow of FDI. Since 1993, China has been the largest host developing country. Strategically, FDI is encouraged and expected to benefit domestic firms' technological capability and competitive competence via technology spillover. Therefore, there is one significant and interesting question need to be answered, that is, whether our expectation has been realized, to what extent, and how?This paper is divided into three parts as follows: the first part is literature review. Regarding technology spillover, the academic has done lots of studies and drawn many different conclusions, which is mainly because FDI is a complex system and is influenced by many factors. The second part analyses the emergence mechanism of the technology spillover, consults the existing results of study, and summarizes the function way as four kinds which are demonstrating and imitating, competing, the connection among the manufacturers and manpower capital circulation. This part also analyses the factors which influence the spillover effect. The third part concentrates on measurement of technology spillover in automobile industry, and makes comments on results of the policy of using market share to exchange technology, and finally brings forward policy suggestions.