Research On The Technological Innovation Effect Of China's Foreign Direct Investment

Technological innovation is a key factor in the core competitiveness of a country,industry and enterprise,and it is also a manifestation of a country's comprehensive national strength.The competition between countries is largely the competition of national science and technology.At present,China is in an important period of the transformation of new and old kinetic energy.Under the background of slowing economic growth and overcapacity,it is urgent to change the mode of economic development from traditional factor-driven and investment-driven to innovation-driven economic growth and accelerated supply-side reform.There are two main ways to improve technological innovation.First,the country conducts independent innovation through R&D activities.Second,it acquires international technology spillovers through international activities such as outward foreign direct investment(OFDI),inward foreign direct investment(IFDI)or import trade to introduce,absorb and re-innovate technology.In recent years,many developing countries have begun to launch outward foreign direct investment in developed countries.Technology Sourcing outward foreign direct investment has become a way for developing countries to acquire international leading technologies and improve their technological innovation capabilities.China's OFDI has grown rapidly,and becoming the world's second largest foreign investment country.China's investment policy has also been adjusted from "introduction" to "introduction" and "going out".Outward foreign direct investment has become a new idea for improving China's technological innovation capacity and building an innovative country under the conditions of an open economy.Therefore,this paper focuses on the issue of the technological innovation effect of China's outward foreign direct investment.This paper mainly studies the technological innovation effect of outward foreign direct investment,that is,whether outward foreign direct investment can promote the improvement of China's technological innovation level.Adhering to the research ideas of asking questions,analyzing problems and solving problems,the paper studies the technological innovation effects of outward foreign direct investment from three aspects:current situation,mechanism and degree of influence,and puts forward relevant policy recommendations at the end of the research.Based on the collation of literature and related theories and the analysis of the current situation of OFDI and technological innovation,the mechanism research and empirical research on the relationship between OFDI and technological innovation are carried out.In terms of mechanism research,it analyzes the internal mechanism of outward foreign direct investment to promote technological innovation in home countries from three levels:enterprise,industry and country.In the empirical research of OFDI and technological innovation,the technological innovation is divided into three dimensions.First,the total factor productivity is used to express technological innovation.This index can reflect the total amount of technological innovation in the whole society.Second,the innovation efficiency represents technological innovation.This indicator reflects the quality and efficiency of innovation.Third,the use of innovation output indicators to represent technological innovation can reflect the ability of innovation output.Therefore,the empirical evidence of the article is also divided into three parts.The first part examines the impact of OFDI reverse technology spillover on total factor productivity and the threshold test of the absorptive capacity of the technology spillover effect.Construct an international research and development spillover regression model to study the impact of outward foreign direct investment on China's overall and technological innovations in the east,central and west.By constructing the nonlinear panel threshold model,the threshold characteristics of each absorption capacity factor affecting the technological innovation effect of outward foreign direct investment are tested.The second part is the research on the impact of OFDI reverse technology spillover on China's innovation efficiency.Based on the data envelopment analysis(DEA model),the overall innovation efficiency of China and the efficiency level of each region were evaluated.The Malmquist productivity index method was used to evaluate the efficiency of scientific and technological innovation.Subsequently,the innovation efficiency index is used to measure the technological innovation ability,and the revised international R&D spillover regression model is used to study the impact of outward foreign direct investment on the overall innovation efficiency of China and the eastern,central and western regions.The third part is the study of the impact of OFDI on the technological innovation output capability through structural equation model(SEM).Finally,the corresponding policy recommendations are put forward through theoretical research and empirical research conclusions.According to the above research,the paper concludes the following conclusions:(1)Reverse technology spillovers of outward foreign direct investment have a positive impact on the technological innovation capability expressed by total factor productivity,but there is a certain regional difference;(2)China's absorptive capacity has a threshold effect on OFDI reverse technology spillover to enhance the capability of technological innovation,and there is a significant difference in the impact of OFDI reverse technology spillovers on technological innovation in different thresholds;(3)Decomposition of total factor productivity found that technological progress and technical efficiency have improved overall,and scale efficiency has declined overall.The level of innovation efficiency varies greatly in different regions of China.In most regions,there are different levels of input redundancy and output insufficiency;(4)The reverse technology spillover of outward foreign direct investment has a significant role in promoting the improvement of China's innovation efficiency.OFDI has obvious technological innovation effects,but there are regional differences in the impact of innovation efficiency in the eastern,central and western regions;(5)OFDI plays a significant role in promoting China's technological innovation capability expressed by innovative output capability.Finally,aiming at the theoretical and empirical research conclusions of this paper,it puts forward the policy recommendations of the government to increase the policy support for technology-sourcing foreign direct investment,and enterprises to improve the embedded ability of overseas business networks,and improve the ability to absorb and re-innovate technology.