The Analysis On Chinese Technology-seeking ODI And Reverse Technology Spillover Effect

Over the past half century, economic globalization has been accompanied by the investment of developed countries in developing countries. Foreign direct investment has become an important channel of international technology diffusion in an open economy,. China is not exceptional also, in the past two decades, driven by the government’s strategy—"going out", outward foreign direct investment in China has increased dramatically. Since1980s, as the knowledge economics and information technologies’rapid evolving, the trend of economic globalization is forcing its way forwards, the competition among enterprises reaches unprecedented fierce, technical factors become the key factor to determinate the result of competition, developing countries should accelerate the pace of technology-seeking outward direct investment. Full use of the advanced technology resources by technology-seeking outward direct investment is a wise choice to developing countries in the environment of economic globalization. As the largest developing country, China seeks to increase the technology-seeking outward direct investment; take advantage of the advanced R&D resources will be an inevitable choice. Through reverse technology spillover effect of outward direct investment, to enhance scientific and technological innovation is also significant for the improvement of enterprises competitiveness and industrial upgrading.In this paper, based on the reference to the theoretical and empirical research of overseas and domestic. Our technology-seeking outward direct investment is analyzed. The first three chapters summarize the theory of technology-seeking outward direct investment and a simple description of investment in China. Chapter Ⅳ, using quantitative analysis method by12developed countries’data to test the reverse technology spillover effect of outward direct investment and found that:outward direct investment is low to the degree of contribution for total factor productivity. At the end, analyzes why reverse technology spillover effect of outward direct investment is not ideal:China’s technology-seeking outward direct investment stock and size are limited. The subsidiaries or R&D institutions of China in the host country are lack of absorptive capacity and built-in capacity; the needs of domestic enterprises and market development are not coincided with the brought technology, in addition to the crowding-out effect by the outward investment to the domestic R&D is possible exist, combined with industry level and national level’s mechanism are not perfect. Summing up the above reasons, put forward the recommendation to improve reverse technology spillover effect of technology-seeking outward direct investment is that encouraging the strength multinational corporation’s technical-Seeking outward direct investment, continue to strengthen the construction of absorptive capacity and built-in capacity and the construction of domestic overflow mechanism.