Analysis On Influencing Factors Of Reverse Technology Spillover Effect Of OFDI From China To EU

Technological progress is the inherent power of a country’s economic growth. In nowadays’ integrated economic system, technological progress in a country depends not only on the domestic R&D investment, but also on international technology spillovers. On account of as one of the developing country with a limited capacity of R&D investment, it is therefore essential for China to adopt the effective use of international technology spillover to promote its own technological progress. As China’s foreign direct investment(hereinafter referred to OFDI) keeps on developing, the matter of how to achieve its full reverse technology spillover effects to enhance the level of domestic technology has become the hot shot of scholars. Moreover, in recent years, the scale of OFDI from China to EU has been promoted rapidly at a certain desirable level, and as a R&D base, EU is acted as an important source of advanced technology, thus it has a crucial practical significance to making a research on the issue of influencing factors of reverse technology spillover effect of OFDI from China to EU.This paper attempts to study the influencing factors of reverse technology spillover effect of OFDI from China to EU and put forward relevant policies and proposals from the perspective of absorptive capacity. Firstly, it introduces the status and characteristics of Chinese OFDI to EU. Secondly, based on the perspective of absorption capacity, it raises the issue of influencing factors of reverse technology spillover effect of China’s OFDI to EU from fundamental factors to environmental factors, including human capital, R&D level, infrastructures, development in financial markets and economic openness. Then, it analyzes the relevant mechanisms of this effect, namely, the mechanism initiated on this effect and the functional mechanism occurred from the above influencing factors. On this basis, in the empirical survey concerning five influencing factors of reverse technology spillover effect of OFDI from China to EU, it comes to the main conclusions: our human capital, economic openness and the level of infrastructure indeed have a vital significance to the reverse technology spillover effect of OFDI from China to EU, and the degree of influence to it weakens successively, while the present R&D level and financial progress level in domestic have not yet generated a facilitating impact on this reverse technology spillover effect of OFDI from China to EU.