An Empirical Analysis On The Reverse Technology Spillover Of High-tech Industry In Chinese Outward Foreign Direct Investment Towards Advanced Economies

Under the condition of globalization,technological progress of a country depends not only on domestic R&D investment,but also on its capability to absorb from other countries' R&D technology.Through OFDI(Outward Foreign Direct Investment),a subsidiary is able to grasp the technological developments,access to R&D resources so that headquarters can absorb those resources and information,thereby enhancing their competitiveness to improve their technical level and their home country's competitiveness,especially developing countries.In 2014,Chinese Outward Foreign Direct Investment flowed into developed economies was $ 23.83 billion,representing an increase of 72.3 percent than last year,far exceeding the flows to developing or transition economies growth(6.3%),Specifically speaking:investment for EU is $ 9.787 billion,growth rate is 116.3%;for the United States$ 7.596 billion,growth rate 93%.Meanwhile,the Chinese Outward Foreign Direct Investment in the EU,the US,Australia has reached the historically highest values,which have become the first choice for Chinese MNEs(multinational enterprises)to invest overseas.Based on what have been discussed,Outward Foreign Direct Investment will be an important source of technological innovation by investing in developed countries for developing countries,such as China.Therefore,the research on whether Chinese high-tech industry can achieve significant reverse technology spillover or not by investing in developed economies,what kinds of environmental factors affect the ability of the home country to absorb the overflow technology and how to arrange the rational allocation mechanism of high-tech industries in developed economies is far more significant.Although many scholars have studied the relationship between OFDI and technological innovation of home country,but about the relationship between reverse technological spillover of Outward Foreign Direct Investment channel and technological innovation of home country needs further study,which is the main reason for this topic.Research found that the previous studies of reverse technological spillover of Outward Foreign Direct Investment channel have limitations,namely,most of academic researches discussed from the perspectives of developed countries,whereas a few are associated with developing countries' OFDI reverse technology spillover.By Taking China as the research object,this paper analyzes the relationship between the reverse technology spillover of OFDI channel and technological innovation.Secondly,for the first time,from the perspectives of the high-tech industry,the study of OFDI and reverse technology spillover combined.This paper chooses to study the reverse technology spillover of OFDI channel by using the data of high-tech industries in developed economies,which is more in-depth and targeted than the previous research.This paper is divided into six parts.The first part is an introduction,mainly introducing the research background,meanings and research methods and innovation,etc.;the second part is the literature review,including the definition of related terminology and literature review of foreign direct investment;the third part is the analysis of Chinese high-tech industry investment towards developed economies,including the data analysis of Chinese OFDI,Chinese investment in developed economies,and Chinese high-tech industries in developed economies;the fourth part is the reverse technology spillover empirical studies,including model establishment,selection of variables.data analysis and estimation results;the fifth part is the empirical study environmental elements that affect the technological spillover,including the source model selection,analysis of empirical data variables and so on;and the section 6 concludes conclusions and recommendations sections,based on the empirical results of the third,fourth and fifth section conclusions,combined with the characteristics of Chinese high-tech industries in developed economies,provides concrete advice to the relevant departments.This paper establishes a reverse technology spillovers model based on the panel data of Chinese high-tech industries investing to developed economies from 2007 to 2014,namely the EU,the United States,Australia,Hong Kong,Russia and Japan.The results show that the R&D spillover through OFDI channel can significantly improve China's Total Factor Productivity(TFP),average GDP,and the second and third industry output.Manufacturing industry's OFDI significantly improve home country' TFP,whereas the other four high-tech industries have no significant effects.On the fifth part,from the home country's perspective,the regression of the impact of environmental factors on technology spillover shows that:China's financing environment,openness environment and economic freedom through various channels to obtain overseas contact have a significant positive role in promoting technology spillovers,but,government corruption control environment through various channels for China to absorb has no significant technology spillover effect.By comparing the regression coefficients,the economic freedom variables on the impact of technology spillovers greater than the financing environment and openness environment.