Outward Foreign Direct Investment To The Enterprise Technology Innovation Impact Study

In the past 40 years of reform and opening up,China has gradually integrated into the global economy through its comparative advantages such as resource endowment and demographic dividends through participation in processing and assembly.In this process,China's economy has developed rapidly and achieved great success,and its international status has improved significantly.However,with the deterioration of the environment and the demographic dividend,the previous high-speed economic development model is unsustainable.Therefore,it is urgent to explore a new development path and continue to promote economic development.With the development of society and the advancement of technology,technological innovation has become the key to more competitive enterprises,and it is also an important driving force for promoting social and economic development.The Party's 18th National Congress has clearly proposed an innovation-driven development strategy to replace the traditional labor force and resource-driven economic development strategy.After that,the Central Committee of the Communist Party of China,the State Council and local governments successively issued a series of policy documents to promote enterprise innovation,among which the "National Innovation Driven Development Strategy Outline" as a programmatic document made an important contribution to guiding innovation-driven development.Under a series of policy guidance,government support and enterprises to increase investment in research and development,China's technological innovation capability has improved.However,compared with developed countries,the proportion of invention patents in the actual research and development process of Chinese enterprises is low,resulting in insufficient independent innovation capability of enterprises,and strong dependence on foreign technology.Core technologies still need to be imported from outside.As the development of China's outward foreign direct investment has become more and more rapid,some scholars have pointed out that through outward foreign direct investment means,we can further enhance the R&D and innovation capabilities of Chinese enterprises.But is the outward foreign direct investment behavior improving or reducing the technological innovation capability of enterprises?Subject to empirical testing.This paper firstly reviews domestic and foreign scholars' research on outward foreign direct investment and technological innovation.The results of most scholars show that outward foreign direct investment can promote the development of technological innovation,but some scholars have reached the opposite conclusion.Then this paper introduces the theoretical basis of outward foreign direct investment,mainly related to the motivation of outward foreign direct investment and the theory of technological innovation of outward foreign direct investment.By establishing a mathematical model and adopting the method of inverse induction,a two-stage dynamic sequential game is carried out,and the influence of outward foreign direct investment on the degree of technology transfer is studied from the perspective of mathematics.The results show that only under certain conditions,the implementation of outward foreign direct investment in the home country can guarantee positive technology transfer,otherwise it will not promote the technological innovation capability of the home country enterprises,but will increase the cost of the home country enterprises,and even cause the technological innovation ability of the home country enterprises.Decline.On this basis,by studying the impact of investment ratio on technology transfer,it is found that the first derivative of technology transfer to ownership ratio is positive,indicating that the degree of technology transfer increases with the increase of outward foreign direct investment of home country enterprises in the proportion of ownership of host countries.In the empirical test stage,this paper uses the micro-level data of listed companies from 2007 to 2015 to select the combination of propensity score matching and double difference,and tests the causal effect between outward foreign direct investment and enterprise technology innovation.The results show that there is a significant positive relationship between outward foreign direct investment and technological innovation of enterprises.Specifically,the implementation of outward foreign direct investment will increase the number of patent applications by 13.5%.On this basis,this paper distinguishes the two investment methods in outward foreign direct investment,and separately verifies the impact of greenfield investment and M&A investment on enterprise technological innovation.The results show that when outward foreign direct investment is greenfield investment,the number of patent applications can be increased by 26.6%,while outward foreign direct investment is a merger and acquisition investment,which will reduce the number of patent applications by 22.9%.This shows that the reverse technology spillover effect brought by the two investment methods does have a significant gap.Greenfield investment will generate positive reverse technology spillovers,but M&A investment will inhibit corporate technological innovation.In addition to outward foreign direct investment can have an impact on enterprise technology innovation,other control variables in the regression equation also show the impact on enterprise technology innovation.Among them,the labor productivity,employee scale,profit rate,government subsidies and research and development variables have positively affected the technological innovation of enterprises.Finally,this article through to the research conclusion summarizes,from two aspects of national and enterprise puts forward relevant policy Suggestions on outward foreign direct investment.At the national level,first,actively implement the“going out”strategy,provide macro policy support for "going out"enterprises;second,provide policy support for technology-seeking foreign direct investment;and third,increase financial input in research and development and education.At the enterprise level,enterprises that implement foreign direct investment should select appropriate investment methods in light of the company's own situation,and pay attention to improving the independent innovation capability of enterprises in the daily operation process of enterprises.