An Empirical Study On The Effects Of Reverse Technology Spillovers On The Independent Innovation Ability Of Chinese Enterprises

In the past 30 years of opening-up policy, China has not only attracted a lot of foreign direct investment(FDI), but also is gradually becoming one of the countries whose scale of outward foreign direct investment(OFDI) increased significantly with the development of economy and implementation of the strategy of going out. By the end of 2013, the flow of China’s OFDI reached $107.84 billion and made the record, grew by 22.8% year-on year. China was ranked as the world’s third largest foreign investor for two consecutive years. However, lots of Chinese firms lack of technologies and innovation. Some studies found that OFDI is an effective way to improve a country’s technology and innovation quickly. Consequently, under the background of building an innovative country and industry promotion, it is extremely significant to research the relationship between the reverse technological spillover of OFDI and our enterprise’s independent innovation abilityCurrently, domestic researches of the technology spillover of FDI effect mainly focus on inward foreign direct investment(IFDI), researches on the reverse technological spillover of China’s OFDI is few. Although there are some similar studies abroad, but most of them are confined to the reverse technological spillover effect in developed countries.With the rapid growth of China’s OFDI scale, this paper is attempting to build econometric model with the data of China to analysis the effect from the reverse technological spillover of OFDI on Chinese enterprise’s innovative ability What’s more, according to the conclusion of the research, we want to give Chinese enterprise some feasible countermeasures and suggestions to better use the OFDI to promote our their independent innovation ability.In this paper, I firstly re-explain related theory after lots of reading and thinking. Secondly, I review the development of China’s OFDI of the past and then introduce the current station of China’s OFDI. Thirdly, I make the empirical study over China’s innovation and related factors by building a model. Finally, according to the conclusion of research, the paper puts forward the corresponding countermeasures and suggestions.