Research On The Influence Of Outward Foreign Direct Investment To Private Enterprises’ Technology Innovation

With the strategy of “Going out” “The Belt and Road” and the fact that domestic demand in surplus,outward foreign direct investment(OFDI)is becoming the mainstream tread of foreign investment in Chinese enterprises.The enterprises are relying on the international market to seek a greater profit,there is no exception that private enterprises pay close attention to overseas.After nearly 40 years of development,private enterprises become the most proportion of outward foreign direct investment.The fact of the increasingly intense competition at domestic and abroad,the only way for private enterprises to improve the strength and be in an impregnable position is absorbing the technology spillover and conducting technology innovation.The influence of outward foreign direct investment is varied,which can be divided into external factors and internal factors.The external factors include economic,political & cultural and institutional factor;The internal factors contain absorption ability,technology level,state of operation and the entrepreneur ability.The forms of outward foreign direct investment include establishment of overseas R&D institutions,overseas mergers and acquisitions,overseas investment and transnational strategic alliances,which are the effective ways to promote technology innovation for private enterprise.Besides,we explain the foreign direct investment to the major effect of the technological innovation of private enterprises--such as drive the flow of people,imitate,technology agglomeration and industry cluster.And then using the method of statistical analysis found the present situation is that foreign direct investment stock increases significantly,the number of investors has soared,and the investment subject present diversification,it shows that private enterprises are gradually become the main force of China’s "going out".Furthermore,the R&D investment and the number of invention patents have the ever-increasing,and the capacity for independent innovation has improved.But,private enterprises have a rapid development also face the obstacles of technology innovation,such as insufficient absorptive capacity,the big technology gap,shortage of R&D talents and funds.Through the analysis of current situation of private enterprises’ outward foreign direct investment,technological innovation and the obstacles,we have the comprehensive understanding of Chinese private enterprises’ technology progress.Inaddition,it is a quantitative analysis that using fixed effect model to study the extent to outward foreign direct investment impact technology innovation of private enterprises.The empirical results show that the foreign direct investment each change1% can cause the technology innovation changes 2.55%;By dividing regional heterogeneity inspection found that foreign direct investment to the east and the central role have an obvious influence in technology progress,but it is not evident to western areas;At the same time the article also concludes that foreign direct investment on technology innovation of lag the conclusion of a significant role in promoting.Finally,on the basis of theoretical and empirical results,the suggestions of strengthen foreign direct investment and promote private enterprise technology innovation can be concluded at creating a good external environment,strengthen support and enhance the independent innovation ability.This paper provides certain theoretical support for the private enterprises who want to through outward foreign direct investment to promote technology level.