Type Of Foreign Direct Investment Location Choice Of Technology Acquisition In Our Country Factors Research

Recently, technical knowledge has been widely used in every industries, its importance hasundoubtedly highlighted. But in China due to the late economic development and the weaktechnical foundation, the economy overall upgrading is very difficult. Therefore, in orderto keep up with the pace of the world economic development, our enterprise need toactively carry out foreign direct investment in order to pursue technology, then change thedomestic production and enhance the core competence.Now the experts and scholars at home and abroad pay too much attention to two aspects:Firstly, the interpretation of the phenomenon of technology sourcing foreign directinvestment; Secondly, the research of the reverse technology spillover effect brought bytechnology sourcing foreign direct investment; And now little research about the locationselection of technology sourcing foreign direct investment, so this paper based on Chinastudies technology sourcing foreign direct investment. The study of location choice isconducted from two dimensions: host countries’ level and domestic regions’ level.In this paper, the three kinds of research methods has been used to analysis the locationselection factors of technology sourcing foreign direct investment, they are qualitativeresearch method, comparative analysis and empirical method. The first is the qualitativetheory research which describes the effect on location selection of our country in detail;And by using the method of comparison, we compare location selection factors of theTSFDI and location selection factors of traditional FDI. In order to highlight the reversetechnological overflow effect on China’s technology sourcing foreign direct investment, weconduct deep analysis; the last one is the empirical analysis method, we choose China’smost concentrated foreign ODI five countries as sample by using this method and pickingthe statistical data of2003-2010inspection. This analysis show the main influence factorsof the reverse technological overflow effect, and conduct the quantitative description ofeach factor.Through deep analysis of location selection about technology sourcing foreign directinvestment, we find the main factors that affect location selection of technology sourcingforeign direct investment, the first is the factors of host country, including one country’snational income, investment in research and patent grant which will affect the country’stechnological overflow effect influence and play an important role in location choice oftechnology sourcing foreign direct investment; the second is the domestic regional factorsof the host country. When we choose specific investment regions, we should emphasize thefactors of this region, such as the regional infrastructure status, the regional innovative mechanism, the regional business environment, the cultural atmosphere, and the regionalgovernment policy support, the living environment; Last but not the least, this area is closeto the university or national research institutions.According to analysis, we can get the conclusion: our country should know clearly itsneeds of technology development. Firstly, we should choose the regions of urgenttechnology needs. So far, the technologies which China is in urgent need of are computersoftware development, manufacturing, biological pharmaceutical, electronic andmechanical manufacturing instruments manufacturing, etc. Different countries havedifferent expertise. So we should make sure about our need and the expertise of the hostcountries. Moreover, technology sourcing foreign direct investment area should choose aregion which has good infrastructure, a perfect innovation mechanism, being close to theuniversity or national research and good living environment, because these places canbring the advanced technical theory and technology application which can bring moredeveloped technology spillover.Finally, based on the development of our country economy and the research about therelated theory, we conclude that in the most important stage of industrial structureupgrading and core competence increasing, the technology sourcing foreign directinvestment is playing an essential role in China. In view of these objective facts, this paperputs forward relevant policies and suggestions from three aspects (company level, industrylevel, and the government level) to analyze the location selection of our TSFDI.