Analysis Of OFDI And Reverse Technology Spillover

With the proposition and deepen development of "go global" strategy as well as rapid growth of China’s foreign direct investment, technology-seeking OFDI has become an important way to gain access to advanced technology and to upgrade technology level. At the same time,the effect of reverse technology spillover caused by technology-seeking OFDI has attracted more and more attention.In this paper, we regard cross-border mergers and acquisitions as the entry point, analyze the current situation of OFDI especially cross-border M & A and make a summary on the reverse technology spillover mechanism according to the existing research. Afterwards, we choose the typically successful enterprises of cross-border M & A behavior in the communication industry as cases to discuss the potential factors that will have an influence on technology spillover.Through this thesis, we found that the technology-seeking OFDI effect contributes to reverse technology spillover effect; similarly, the spillover effect relies on the technology gap between the parent company and the company in host country. Finally, we will offer some suggestions to boost the upgrade of the technology and innovation of technology-seeking OFDI.