Research On The Impact Of Foreign Direct Investment On Corporate Innovation

After the reform and opening,China has always been the focus of foreign direct investment of developed countries,and capital net importer.However,with the transformation and upgrading of China's economy,and the degree of globalization,in 2003,the Chinese government put forward the "going out" strategy seriously,introduce various policies of encouraging firms to begin foreign direct investment.For the encouragement and support,foreign direct investment of Chinese enterprises develop very fast,China has also transform from the net capital importer to the net capita exporter.China's foreign direct investments,whether from the amount or from the quantitative,are in the rapid development.How is the effect of these foreign investments,whether Mergers and Acquisitions of foreign enterprises can enhance the performance of enterprises,have impacts on parent company,etc.,have become very worthy of attention.The purpose of this paper is to explore the relationship between foreign direct investments and innovation of Chinese enterprises,that is,whether Chinese enterprises'foreign direct investment can have effect on their own innovation,whether can promote innovation or hinder innovation.This paper is divided into 6 chapters,the first chapter is introduction,which introduces the background and research significance,also explains some key points,research methods,and some deficiencies.The second chapter is literature review,it reviews literature of OFDI on and abroad.The third chapter is the theory of FDI on the innovation of mother country,including literature review of direct investments theory,the effects of OFDI on the innovation of mother country,and the factors of strifing innovation of mother country.The fourth chapter analyzes the current situation of Chinese firms' direct investments.From the point of stock and flow,this paper gives a detailed summary of zone and industry of foreign direct investments.The results show that Mergers and Acquisitions become the most important form of Chinese enterprises' foreign direct investment.From the industry point of view,equipment manufacturing,information transmission,software and information technology service industry and other high-end Industrial investment is far more than other industries,indicating that China's enterprises to seek creative assets,technology-seeking foreign direct investment is growing rapidly,an objective reflection of China's enterprises need to break through technical barriers to complete the industrial transformation and upgrading of the urgent requirements.The fifth chapter is the empirical part,in this paper,the innovation investment is used as the measure of enterprise innovation,using the propensity score matching(PSM)and difference in deference(DID),the panel data of manufacturing listed companies and " foreign investment enterprise directory ".Considering the reverse technology spillover effect of OFDI always occurs in the investment from developing countries to the developed countries,This paper uses the data of all foreign direct investment manufacturing companies and manufacturing companies only investing in high-income countries.This paper has done the empirical research for these two parts respectively.Finally,the sixth chapter is the conclusion and policy suggestion.The main conclusions of this paper are:the motivation of the OFDI from developing countries to developed countries is the technology seeking and asset seeking.Foreign direct investment influences the innovation inputs and outputs of mother country through four micro-mechanisms:technology cluster absorption mechanism,Merger and Acquisition mechanism,personnel exchange mechanism and market Competition mechanism,and the mother country's economic level,openness,etc.will affect technology spillovers.Nowadays,the proportion of technology-seeking foreign direct investment in China's foreign direct investment is still small,but is growing rapidly.From the results of two empirical tests,we can see that,from the whole level,the promotion effect of foreign direct investment on R&D investment of Chinese enterprises is not obvious,which may be due to the existence of various motivations for foreign direct investment,including technology seeking,commerce Services,access to natural resources,the latter two kinds of investment spillover effect is reflected in the study of foreign advanced management experience,business model,etc.,There are fewer industrial spills,this does not reflect the increase in innovation investment;if the study Objections limit the investment in manufacturing enterprises of high-income countries,,foreign direct investment is a significant contribution to the enterprise innovation investment.The previous theoretical part of this article has been discussed,the investments from developing countries to developed countries are mostly for technical purposes.Combined with test results of manufacturing enterprises in high-income countries,it can be confirmed that OFDI in the purpose of technology seeking can promote the business innovation.There are two innovative points in this paper:first is the research point and the research idea.The existing literature that related to this topic mainly focus on the location of foreign direct investment choice,which mainly study that what kind of business are more willing to do the external Direct investment,and what factors Chinese enterprises should consider in the process of foreign direct investment.Therefore,this paper attempts to do some analysis in exploring the impact of foreign direct investment on the innovation of home country enterprises.Secondly,the innovation is the choice of the data,the existing literature in the analysis of foreign direct investment on China's technological innovation,mainly concentrated in the macro level with the provincial panel data.There are few studies on the micro-level of the enterprise,and only a few micro-level studies are limited to the year from 2005 to 2007.This paper attempts to extend the timeliness of micro-data by using the Chinese manufacturing listed companies data and "foreign investment enterprise directory"from the micro-enterprise level.And this paper is trying to find the relationship between China's foreign direct investment and business innovation with these data.