The Reverse Technology Spillover Effect Of SMEs’ OFDI

Recently,the amount of my country’s outward foreign direct investment(OFDI)has shown a steady and good upward trend,and the breadth and depth of OFDI have also continued to increase.As the main means of entering the international market,OFDI has become more and more favored by enterprises.In the past,most of the OFDI were large-scale enterprises,and they were often large in scale and strong in competitiveness.With the development of the economy and the changes in the international environment,small and medium-sized enterprises(SMEs)as an indispensable part of our country’s market economy also began to gradually expand overseas markets.Their goal of OFDI gradually changed from market-oriented to technology-oriented,expecting to obtain foreign advanced knowledge and technology,thereby promoting its own development.Although SMEs have flexible operations,fewer management links,and sensitive responses to the international environment.They often suffer from small scale,lack of core advantages,weak risk resistance capacity,and lagging access to market information.Therefore,the decision-making of enterprises’ OFDI activities requires the focus of SMEs.Meanwhile,on account of massive land in our country,wide variation in economic levels among different regions,and unbalanced regional development,there are also large gaps in the market system environment of various regions.The eastern region,with its unique economic policies and a relatively complete market system environment,often can attract more SMEs to carry out business activities.Therefore,on the basis of SMEs in our country,study uses the sample of which are listed on the Chinese Growth Enterprise Market(GEM)as the research object from2011 to 2020.The paper focuses on the reverse technology spillover effect and absorptive capacity.The outcome indicates that SMEs have reverse technology spillover effect through OFDI activities and that it is somewhat persistent.Additionally,the reverse technology spillover effect and total factor productivity show a U-shaped relationship,and the enterprise scale,human capital and technological innovation ability can promote the enterprise’s ability to absorb reverse technology spillover to a certain extent.In the heterogeneity test,firstly according to the industry type grouping,it is found that the human capital,scale and technological innovation of the manufacturing industry have significantly promoted the reverse technology spillover effect.But the enterprise size,human capital,profit rate,age and technological innovation of non-manufacturing samples have no significant impact on the reverse technology spillover effect.Secondly,according to the classification of economic regions,the conclusions demonstrates that all factors of the samples in the eastern region have a strong positive effect on the reverse technology spillover effect.But in the central and western regions,not only human capital,enterprise scale and technological innovation have no significant effect on the reverse technology spillover effect,but also the enterprise profit rate and age have a negative impact on the reverse technology spillover effect.Eventually,it appears that the enterprise size of the state-owned SMEs has a considerable impact on the absorption capacity of the reverse technology spillover,according to the nature of the ownership of SMEs.Moreover,non-state-owned SMEs’ human capital,scale,and capacity for technological innovation have a favorable effect on the reverse technology spillover effect.In conclusion,corresponding opinions and suggestions are made from government and enterprise.It is expected that the government can differentiate and improve the institutional environment of various regions,formulate and improve incentive policies about OFDI and strengthen the talent introduction from various regions.Meanwhile,enterprises should also pay attention to the direction of the times,actively carry out OFDI activities,enhance their own absorption capacity by strengthening investment in R&D innovation and establishing a sound human resource management system,and taking differentiated measures for enterprises with different characteristics.