The Study On The Effect Of Outward Fdi On Technological Innovation

With implementation of the "going out" strategy, China has accelerated the pace of foreign direct investment, which has brought some effect. But the majority of researches on China'FDI focused on "bringing in" effect. The researches on outward foreign direct investment (OFDI), especially the relationship between OFDI and technological innovation are relatively few. Therefore, what is the current status about OFDI? How does outward FDI promote technological innovation? And what is the correlation coefficient? All these questions are the emphases which should be solved in this paper. So, with the methods of qualitative analysis, statistical analysis, case analysis and econometric study, the paper researches every aspect gradually.Based on the result of current research, this thesis analyzes the mechanisms of OFDI on technological innovation according to the different entering models. And give a in-depth analysis on the effect which OFDI promotes technological innovation. Firstly the study introduces the background and methods of this thesis and the theory of outward FDI and technological innovation. Then this study analyzes the paths how outward FDI promotes technological innovation and the factors of the effect between outward FDI and technological innovation. Thirdly, the study analyzes the current situation of OFDI in Jiangsu. Fourthly, the study selects the cases of M & A of NAC and Chunlan Group. This study found that technology-based OFDI is the most direct way to improve the technological innovation, but the better integration of technical resources; localization of management and technological innovation mechanism of internalization is the key to improve the technological innovation. Moreover, the study selects the C-H model to analyze the correlation coefficient between outward FDI and technological innovation. This research result shows that OFDI can promote technological innovation. This kind of promotional effect is limited because of small scale of OFDI in Jiangsu, but it is no doubt that OFDI has become a new approach to promote technological innovation. Finally, this study provides policy suggestions for enterprises and government.