Impact Of OFDI Reverse Technology Spillover On China's Technological Innovation Capability

As the economic globalization is deepening,the international market is becoming increasingly competitive,there's an urgent need for a nation and its companies to build up their technological innovation capability,and one important way to develop technological innovation capability is to gain technology spillovers through OFDI.Since the Chinese government implemented the Go Out policy,the scale of OFDI flow for China has been expanding year by year,it has developed rapidly and has gained remarkable achievements.In 2015,China's OFDI flow has reached 145.67 billion US dollars,has surpassed Japan to rise to second in the world,and has exceeded FDI flow for the first time.Meanwhile,there's a high degree of regional imbalance for China's OFDI,the OFDI flow and stock in the eastern provinces are significantly higher than those of other provinces.Also,for those provinces that have advantages over OFDI,their technological capabilities are also better than other provinces.In this context,taking the factors of spatial geography into consideration in the study of the impact of reverse technology spillovers from OFDI on China's technological innovation capability,is rather important for the promotion of OFDI and the development of technological innovation capability.Moreover,most of the existing research focuses on the motivations of OFDI,the existence and influencing factors of reverse technology spillover,there are very few studies from the perspective of space.Therefore,combining theoretical analysis and empirical analysis,this paper attempts to analyze the impact of reverse technology spillover from OFDI on China's technological innovation capability from a spatial view,which has practical and theoretical significance,and is a strong complement to existing studies.This paper selects inter-provincial panel data from 2004 to 2014.This thesis constructed a spatial Durbin model,and separated full sample data and sub-regional sample data to examine the impact of reverse technology spillovers from OFDI on China's technological innovation capability from different levels.The article is structured as follows.The first chapter is introduction.It describes the background and significance of the topic.On the base of the studies of domestic and foreign scholars and put forward research methods and content frame,innovations and shortcomings of this study.The second chapter is the theoretical basis and the mechanism analysis.The first part defines the basic concepts,then elaborates OFDI theories of developing countries and endogenous economic growth theory,and summarizes the mechanism of reverse technology spillover of OFDI in three levels:enterprise,industry and state.The third chapter is the analysis of the current situation of China's OFDI and technological innovation capability.First examines the overall characteristics of China's OFDI,the distribution of industries and regional distribution,the result shows the scale of OFDI developed rapidly,M&A investment was very active,and there is a strong agglomeration in the industry distribution,domestic distribution and host country distribution.The second part analyzes the and technological innovation capability from three aspects of R&D expenditure,R&D personnel and R&D output,the result indicates that China's scale of R&D expenditure and R&D personnel in on the international leading level,yet there is still a big gap in R&D investment intensity between China and developed countries.The number of patent licenses is increasing and the structure is optimized.The eastern region is leading the central and western regions from all three aspects,shows a strong characteristic of spatial clustering.The fourth chapter is the empirical analysis.First,make presumptions based on current situations,then builds a spatial weight matrix,examines the spatial autocorrelation of the variables.Next,a series of tests were used to determine a two-way fixed effect spatial Durbin model,the regression result shows that the foreign R&D capital stock through OFDI reverse technology spillovers not only has a significant positive effect on local technological innovation capability,but can also enhance the technological innovation capability of neighboring province.The sub-regional sample data regression shows a similar result,and the reverse technology spillover effect in the eastern region is much stronger than the effect in the central and western region.The fifth chapter is the conclusion.Combined with the results,this paper put some suggestions to promote China's OFDI and technological innovation capability.