The Study On The Reverse Technology Spillover Effect Of China’s Direct Investment To The European Union

With the growing trend of economic globalization, corporations are facingstronger competition; technology has become a key factor of the competition result.As an important international technology spillover vector, the Outward Foreign DirectInvestment (OFDI) would make an influence on the technology progress ofMotherland. In recent years, this topic started to pay attract more attention. However,among the domestic studies of the reverse technology spillover effect of OFDI, theinvestment object chosen is not targeted. Since the reform and opening-up policy,with the propulsion of the “going-out” strategy, China’s direct investment to theEuropean Union has developed significantly, making it possible to study the reversetechnology spillover effect of China’s direct investment in the European Union.Based on the theory of foreign direct investment and the summary of relatedliterature at home and abroad, first of all, this paper reviews the course and the presentsituation of China’s direct investment in the European Union, mainly including theanalysis of the investment scale, location distribution, industry selection and entrancemode. Then it analyzes the mechanism of the technology progress of Motherlandthrough OFDI from the perspective of the company, industries and nation, andanalyzes the factors influencing the effect of reverse technology spillover from theperspective of the investor and the host country. At last, on the basis of theoreticalanalysis and the international R&D spillover regression model, this paper makes theempirical test of the existence inspection of the reverse technology spillover effect ofChina’s direct investment in EU and the factors of reverse technology spillover effect.The empirical results show that the reverse technology spillover effect of China’sdirect investment to the EU began to appear, but the strength of its effect is relativelysmall. The host country’s rich human capital, advanced technology level and strongintellectual property protection can promote the absorption capability of OFDI reversetechnology spillover; the effect of the openness level is not sure. Based on the aboveresearch conclusion, some policy suggestions from two angles the micro-enterprises,macro-government are put forward to speed up the reverse technology spillover effectof China’s direct investment in the European Union.