| With the implementation of the strategy of Going Out and B&R, Chinese outward foreign direct investment (OFDI) has increased rapidly. Along with the economic development after Reform and Opening, Chinese structure of industries upgrades to be more advanced, but it’s still a vital factor for Chinese economy to develop under the background of New Normal. At present, the motivations of Chinese OFDI gradually turn from market seeking or resources seeking to strategic assets seeking while technology seeking OFDI is an important part of strategic assets seeking OFDI, which affect Chinese technological progress and industrial upgrading.There are direct transmission mechanism and indirect transmission mechanism to explain the industrial upgrading driven by Chinese technology seeking OFDI. Direct transmission mechanism bases on the effect of marginal industry and industry correlation while indirect transmission mechanism on technological progress. Indirect transmission mechanism is the theoretical basis of industrial upgrading driven by Chinese technology seeking OFDI.To do empirical research, this paper introduces L-P model to Chenery standard structure and uses Hoffinan coefficient and industrial level coefficient to calculate the situation of Chinese industrial upgrading based on Chinese provincial panel data from 2005 to 2014. The results show that Chinese technology seeking OFDI promotes industrial upgrading through the overflow of technology from target countries while domestic ability of R&D and human capital impose great influence.On micro level, this article analyses typical cases of technology seeking OFDI by Chinese enterprises which are the case of the successful merge of Geely company and Volvo company and the case of the failed merge of TCL group and Alcatel company from three perspectives of ownership (O), location (L) and intemalization (I) according to the theory of international production compromise by Dunning, indicating the reasons for the differences in the results of the two cases. The results of case study prove the conclusions of theoretical and empirical analysis.Combined with theoretical analysis, empirical analysis and case analysis, this paper argues that China’s technology seeking OFDI should be encouraged. Moreover, increased investment in scientific researches, development of technical talents and measures to promote independent innovation should be taken into account to give full play to the effect of industrial upgrading driven by technology seeking OFDI. |
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