The Analysis On Chinese Enterprises' Technology Sourcing FDI And Its Reverse Spillover Effect

Since the 1990s, more and more MNCs had practiced global layouts based on value chains, in order to transfer the location advantages of different countries into their own competitive advantages. Faced by the MNCs' accelerative strategic layouts, Chinese enterprises should learn from the MNCs and search favorable locations for each value chain links. Especially for the strategic R&D links, with the unsatisfactory spillover effect of FDI in China, Chinese enterprises need to use the advanced foreign R&D factors through increasing the technology sourcing FDI in developed counties, and then upgrade the industrial technology through the reverse technological spillover effect. There are two directions of the domestic and foreign researches on the technology souring FDI: first, possibility of the technology souring FDI; second, the effect of the technology souring FDI——the existence of the reverse spillover. The foreign researches have come to many meaningful conclusions: sourcing the foreign advanced technology has become the important motivation of the FDI among developed countries, and it is also feasible for the technology souring FDI from the backward counties to developed counties, owing to the reverse spillover effect; although the results are different, most empirical researches, based on the different data of countries, industries and enterprises, has proved that: the reverse spillover effect from the technology sourcing FDI will increase the TFP of the parent company and industry in the home country. The literature in China, focusing on the investor, industry, location and type of the investment, also underline the importance of technology sourcing FDI, but until now there is no empirical research on the possibility of Chinese enterprises' technology sourcing FDI and its reverse spillover effect. This paper, based on the foreign researches, will analyze Chinese enterprises' technology sourcing FDI: in PartⅡ, I analyze the possibility of Chinese enterprises' technology sourcing FDI through the game theory modal and the mechanism of the reverse spillover effect; in PartⅢ, I make the Econometric examination of the reverse spillover effect, the result is that Chinese enterprises' technology sourcing FDI does not bring about the reverse spillover effect, but also hinder the increase of China's TFP; in PartⅣ, I analyze the reasons of the dissatisfactory reverse spillover effect: the volume of the technology sourcing FDI is too small, Chinese enterprises' overseas subsidiaries have low absorptive and Embedding capacity, the technologies sourced form the advanced countries don't adapt to the need of domestic market, there may be the crowding-out effect of domestic R&D investments, and finally, the spillover mechanism is insufficient. We must increase the reverse spillover effect through encouraging the technology sourcing FDI, strengthening the absorptive and Embedding capacity of Chinese enterprises, and improving the domestic spillover mechanism.