Two-way Investment,Two-way Technology Spillover And Chinese Enterprise Innovation

In China’s two-way investment(Introducing Foreign Investment IFDI and Foreign Investment OFDI)entering the new normal state of"internal and external balance",and the slowdown of Chinese economic growth.,the mechanism of the interaction mechanism of two-way investment and the interaction mechanism of reverse technology spillover is explored to improve the supply quality and efficiency and promote the efficiency of supply.Transformation and upgrading of enterprises is an urgent need for economic development.Based on this situations,by using the matching micro-level data of China’s industrial enterprises from 2004 to 2007,the paper empirically examines the influence of two-way investment behavior on the enterprise’s innovation ability based on the Probit and DID double-difference method.The study found that the technology spillover effect of IFDI in China’s enterprises and the reverse technology spillover effect of OFDI have a coordinated effect.The two-way investment behavior of Chinese enterprises generally promotes the enterprise’s innovation decision-making behavior and improves the company’s innovation performance.Further analyze the influence of two-way investment on technology innovation of Chinese enterprises from different industries,regions,and ownership enterprises.The study found that the positive impact of two-way investment on middle-tech industries,eastern regions,and foreign-invested companies is even more pronounced.The conclusions of this paper have more important policy implications for promoting the coordinated development of two-way investment of Chinese enterprises and the long-term sustainable development of the economy.