Research On Technical-seeking FDI Strategy Under Technology Gap

With the trend of economic globalization and the intensified inter-firm competition, the position of technical superiority rises suddenly in the enterprise competition and technology gap on economic growth is increasingly apparent. Technology-seeking FDI is a "reverse type of foreign direct investment". It can be the host of advanced technologies through the reverse technology overflow effort. It has been successful experiences abroad, such as the post-war Germany, Japan and the Asian newly industrialized countries. They access to the advanced technology relying on technology-seeking foreign direct investment, thus into the ranks of advanced countries. China is in the semi-industrial stage of development, technological innovation is directly related to the further development. The traditional "trade window type" or "manufacturing base type" foreign direct investment has not adapted to the required of China's economic growth under the conditions of opening economic. Therefore, technical-seeking FDI will help to fill the technology gap existing in our country and enhance our business competitive advantage in the global value chain, and should become the mainstream of China's foreign capital exports.Paper is divided into six parts:Partâ… :Introduction. First, the paper explained the significance of the topic and made this issue to be discussed; Second, summarizes related research at home and abroad; Finally, this study outlines the framework, content and major innovation.Partâ…¡:Technology Gaps and Economic Growth. Describes the technology gap and related theory, demonstrated the technology gap a significant impact on economic growth, that to close the technological gap in a country long-term economic development.Partâ…¢:Technical Seeking foreign direct investment on technology to make up the gap. First, With a variety of traditional techniques for Comparison and analysis of the unique advantages of Technology-seeking FDI, the paper put forwards the concept of Technology-seeking FDI; Second, it reveals the mechanism of access to technology of Technology-seeking FDI, which is through reverse technology spillover effect from the companies, industries and countries in order to achieve the ultimate level of national technical upgrading; Finally, it discusses the factors of spillover effects by the corporate level technology from supply-side and receive-side, which supply-side factor is the role of local industrial clusters of developed countries and receive-side factor is corporate foreign sub-companies embed knowledge absorptive capacity and ability of the cluster.Partâ…£:domestic and foreign technology-based foreign direct investment for the development of the status quo. First, the paper analyzes technical-seeking FDI on the domestic and foreign countries. It Points out that technology-seeking FDI of the developed countries choice other developed countries as Investment regions, mainly the with information technology hardware, automotive and high-tech industries such as bio-based medicine as investment industries. In recent years, technology-seeking FDI has shown a gradually trend in developing countries. Second, although the success of developing countries through technology-seeking FDI not common, but the pace of development is soon, especially in South Korea, Singapore and India, for the successful implementation of enterprise-seeking foreign direct investment in technology has an important reference. Although China started late, but there are many success stories. Finally, the paper summarizes that China has successfully launched technology-seeking FDI enterprises the last ten years, and analyzes in four aspects from the main selection, industry selection, location selection and market entry mode, and points the direction of development of China's enterprises in the future.Partâ…¤:technical Seeking FDI Strategy in China. The paper puts forward our technical Seeking FDI strategy according to China's national conditions and the status of business. It analyzes them from two aspects mainly:the enterprise level and national level. At the enterprise level, from the intention of technical Seeking FDI to a set of plans, programs, decisions, and organize and controlling the whole process of the investment activities, gathering to maximize the use of technology developed spillover effects, and finally to seek the internalization of technology, companies often go through a range of industries, regions and market entry mode of the selection process to choose how to proceed in these areas to become the key of technical-seeking FDI. This thesis analyzes the main selection in the way of combination of quantitative and qualitative:industry selection, area selection, market entry mode selection and technology internalization. At the national level, it raises the national awareness of the technology from a strategic model for the importance of foreign direct investment to strategic planning to guide long-term development of enterprises, with a powerful means of preferential measures and services to support the investment activities of enterprises to effectively the laws and regulations to protect the legitimate interests of enterprises, enterprises of China's technology-seeking foreign direct investment strategy to create a favorable external environment for comprehensive, ensure that technology-seeking foreign direct investment in the long.Part VI:Conclusion. First, the technology gap on the long-term development of a country's economy has a significant impact, making our country to close the technological gap particularly urgent. Technology-seeking FDI spillover effects provided an opportunity to close the technological gap of our country. Therefore, developing technology-seeking FDI is the realistic choice to narrow the technology gap with foreign countries and enhance the value chain of enterprises in the global competitive position. Secondly, in order to carry out technology-seeking FDI smoothly, from the enterprise level, the enterprises in the industry selection, location selection, market entry methods should be to make the right strategic decision-making choices; from the national level, the need for China Enterprise Technology-seeking FDI strategy to create a favorable external environment.In this paper, several aspects of the innovation to try:First of all, research ideas. In recent years, the research focused on how to attract foreign direct investment in China. In this paper, the technology gap as the starting point, describes that our country obtains advanced technology through technology-seeking FDI in the form of reverse spillover effects from developed countries, and closes the technological gap.Secondly, research methods. Using a combination of qualitative and quantitative methods.To 23 countries for study and build a technology-seeking FDI location choice index system, from a quantitative point of view of location choice is analyzed. Other qualitative methods used were described in detail.Finally, research forms. The charts use more non-text things like form to describe the characteristics of the study. The expression on the study makes a more intuitive and precise.Because of my limited ability and information, the paper still has many shortcomings:Missing Data. Because of some countries such as Luxembourg, Taiwan, Finland and other important countries may have great significance for China's enterprises, it makes study less comprehensive. In the research technology-seeking FDI in developing countries is not very fully described, mainly lists the enterprise. With technology-seeking FDI has become increasingly active in developing countries, technology-seeking FDI and systematic information is increasing, which would make a more detailed and in-depth Research.