A Study On Foreign Direct Investment Without Technology Advantages From Spillovers Of Host Country And The Absorptive Capacity Perspectives

With the accelerating of economic globalization,national corporations are facing the huge pressure caused by the competition all around the world. As technology has become one of the key factors to determine the consequsence of competition among corporations, foreign direct investment with technology-accquisition has been surged since 1980's.China's enterprises have also speeded up to invest towards developed countries and regions ,but it is poorly to acquire foreign technology by direct investment on the whole. Therefore, it is not only the need of theory research also improvement operation performnance of China's enterprise in FDI to study on how to acquire foreign technology.Based on different researches for multinationals without advantages,the paper links the pratices of FDI and carefully studies technology-acquisition FDI by approaches of models and cases.The paper can be divided into four parts. Firstly, the paper reviews traditional FDI theories and thinks these theories emphasis transnational corporations have owned special advatages which are mostly in monopoly technology to host enterprises,technology-acqusition FDI can not be illuminated by these theories. the outward FDI by enterprises without technology advantages ,namely enterprises have higher efficiency than other domestic corporations and fall behind enterprise from host country in technology is put forward .However, some scholars have demonstrated the standpoint that it is not necessary connect with transnational corporations and special advantages.These researches can be divided into two styles,one of which illuminates FDI by oligopoly reaction and exchange of threat and does not explains how the first FDI happen,the other of which pays attention to the diffusion of technology and exaggerates the effect on enterprises without advantages.But these ideas have been absorbed by reseaches on echnology spillovers.pespectives.The researches illustrate FDI as profit maxmization through international and domestic markets,basing on localized technology spillovers and the requirement of absorpative capacity of enterprises without advantages which makes sure that enterprises absorbs technology spillovers from advanced corporations. The requirement cannot be easiliy realized in FDI.Secondly, we discuss the mechanism of companies without technology advantages acquiring host country's technology by introducing the demand growth of host country's industry to extend the model of international technology tranfer by Wang and Blomstrom(1992). Because of competing for the host country's market, companies without technology advantage and advanced counterparts go in for technology -learning and technology - transfering which lead to absorb spillovers of host country's technology by companies without technology advantage. When host country industry demand keeps stable growth, and it is not difficult to learn technology, in the end technology learning and transfer can produce positive feedback and give rise to the excellent of quantity and degree of technology spillovers.And then we deepen research on the FDI model of gaining host technology from two different prospectives. While companies without technology advantage and their counterparts with advanced technology exert in one-way technology spillovers and introducing enterprises'activity of R&D. If the former's R&D activity is relatively inferior to the latter's R&D activity.and interaction between them will lead to produce large in technology spillovers'degree, advanced companies limit to their operation at home and companies without technology advantage will invest counter's country . If the density of the former's R&D activity is much less, which leads to the lower spillovers. This gives rise to advanced companies choice FDI and counterparts without technology advantage prefer the same activity because of exchange threat game and technology–seeking motivation. When two-way technology spillovers take place, we introduce spillover's transfer fees within corporations. If advanced corporations limit to their operation at home, two-way spillovers can promote corporations without technology advantage to choice FDI the same function as spillover's transfer fees decreases.Whether corporations without technology advantage do in for FDI or not depends on the degree of technology spillovers and technology distance between corporations.we present a three-stage Cournot duopoly model ,which is based on constructing absorptive capacity which is the function of enterprises'own R&D investment so as to overcome the defect of the research of FDI for acquisition-technology and two-way spillover through different technology enterprises from two countries, whether corporations without technology advantage do in for FDI or not depends on the degree of technology spillovers and the strengthen of own R&D activity on absorptive capacity of corporations.Thirdly,we use cases of Jingdongfang Enterprise and Samsung Electronics Company to testify the theory of the FDI of corporations without technology advantages.In the end, according to China's FDI ,we find some problems in the FDI to acquire technology by our corporations, and then this dissertation puts up some advice for Chinese government and corporations and presents some issues that can be further studied in the future.