Analysis On Regional Difference Of Reverse Technology Spillover Effect Of China’s OFDI

Under the background of globalization, the technology contest between countries is not only reflected on their ability to innovate but reflected on the integration capabilities of global R&D. In recent decades, China adopts the strategy of " market for technology" to attract foreign direct investment,but the technology obtained are mature and standardized, moreover, along with the improvement of technology, its effect is waning.So in order to optimize China’s industrial structure and enhance its position in the global value chain,we have to find new ways to make use of global R&D. The current study shows that OFDI also has a reverse technology spillover effect and can promote the progress of technology.Along with the "going out" strategy and the accession of WTO, China’s formally integrated into the tide of globalization, China’s OFDI continues to expand. China’s OFDI flows reached$87.8billion in2012, an increase of17.6%over the previous year, total stock reached$531.94billion,becoming the largest in developing countries. The rapid development of OFDI will become an important driving factor in improving our technical level. OFDI can break through barriers to access core technology and can contact with the source of foreign advanced technology directly,even can use local elements to improve our R&D capabilities, and then has a reverse technology spillover effect through our subsidiary to improve the technological level of the industry.The paper is in accordance with the idea of" theory-An Empirical Analysis-Policy Recommendations " using qualitative analysis, quantitative analysis and comparative analysis. Based on the arrangement of related theoretical literature,firstly doing theoretical analysis of China’s OFDI reverse technology spillover mechanism and then collecting inter-provincial panel data to empirically analysis the existence of China’s OFDI reverse technology spillover effect and its regional differences. Lastly,the paper quantitatively analysis the factors causing regional differences and explores their specific threshold.Results of this study show the existence of reverse technology spillover effect of China’s OFDI,but there are significant regional differences,the eastern region is greater than the western region and the national average; and various factors affecting IFDI reverse technology spillover exist threshold effects, the threshold value of per capita GDP,average years of education of the labor force and R&D expenditure share of GDP is25,480yuan,9.2535year and1.3266percent respectively.The regions reach the threshold levels occurred mostly in the eastern provinces, so the reverse technology spillover of OFDI in the eastern region is remarkable than in the central and western regions.