Study On Technological Advancement Mechanisms And Effects Through ODI Of Chinese Enterprises

China, as the largest developing country, facing the situation of defect of independent R&D,ineffective of "market for technology",need to step award through increasing ODI in developedcountries to achieve advanced foreign technology and boost domestic industrial competitivenessrapidly.Through ODI, domestic enterprises in developed countries access to advanced technicalknowledge to speed up acquisition of technology, improve efficiency, enhanced the autonomy andcontrol ability. This paper analyses the ODI and the technology progress from both theoretical andempirical ways. Firstly, based on the traditional foreign direct investment theory, ODI theory,theoretical research and ODI impact domestic technology advances theory,we analyze therelationship between ODI and technological progress; Secondly,we describes the Chinese ODI andtechnical progress in the status quo, analysis the scale of ODI, regional distribution and industrydistribution, technological progress input status and output status quo; Thirdly, from thecooperative association driven mechanism, the feedback mechanism of R&D results, reversetechnology transfer mechanisms, demonstration competition driven mechanism and networkembedded access mechanisms,we analyzed in terms of the mechanism of ODI impact oftechnological progress; Fourthly,empirically test whether the ODI have a positive impact on thedomestic technological innovation, ODI overflow of foreign R&D capital to promote the TFP ofChina,The results showed ODI foreign R&D capital stock overflow can promote domestic TFP,but the impact is relatively small, this is related with the size and region of Reverse FDI; Finally,summarize empirical conclusions of the study and afford policy recommendations both on thegovernment level and the enterprise level.