The Impact Of Outbound Direct Investment On The Innovation Performance Of Multinational Enterprises In China

With the progress of times and the development of global economy,China has became the second largest economic entity over the world,while China's economy has also been in the process of transformation.In 2013,the proposal of a strategy named "The Belt and Road Initiative" further responds and promotes the Chinese enterprises to"go out" better.On the other hand,as China is currently in the primary stage of outbound direct investment,"The Belt and Road Initiative"strategy provides not only the opportunities,but also the challenges for China's outbound direct investment.Whether the Chinese multinational enterprises can produce the reverse technology spillover effect to achieve the effective knowledge and technology of the host country and eventually improve their innovation performance has became the key to success in their outbound direct investment,which also has important guiding significance for the outbound direct investment in the future.The below are the innovations of this paper.Firstly,it provides a new angle,which studies whether the ODI in backward countries can promote the improvement in the innovation performance of Chinese multinational enterprises.Secondly,on the basis of the researches of previous scholars,it improves the measurement standard of enterprise innovation performance by integrating the number of patents,the quality of patents and the performance of business to express the innovation performance of enterprise.Firstly,this paper expounds the related theories of reverse technology spillover effect and enterprise innovation performance.Secondly,it analyses the global background of international direct investment and China's current situation of both foreign and outbound direct investment.Then it expounds and analyses the current situation of China's outbound direct investment in the region of "The Belt and Road Initiative" and the opportunities and challenges China faces.Thirdly,this paper carries out an empirical analysis based on the panel data of 40 Chinese multinational enterprises which has outbound direct investment in the region of "The Belt and Road Initiative" from 2012 to 2016.This empirical analysis analyses the related influence of enterprise ODI investment depth,enterprise ODI investment strength,enterprise knowledge absorptive capability and the environment of host country's knowledge pool on enterprise innovation performance while the process of multinational enterprise's outbound direct investment.Enterprise ODI investment range is also introduced as a moderating variable.The conclusion of this empirical analysis shows that,enterprise ODI investment strength and enterprise knowledge absorptive capability have the positive influence on enterprise innovation performance,while enterprise ODI investment depth and the environment of host country's knowledge pool have the negative influence on enterprise innovation performance.In addition,enterprise ODI investment range has a more significant moderating effect on the factors except the environment of host country's knowledge pool.