TY - JOUR
T1 - Outward foreign direct investment and domestic innovation performance
T2 - evidence from China
AU - Zhou, Chongyang
AU - Hong, Jin
AU - Wu, Yanrui
AU - Marinova, Dora
PY - 2019/1/2
Y1 - 2019/1/2
N2 - The existing literature has explored the existence of reverse technology spillover through outward foreign direct investment (OFDI), which means domestic firms improve their technological innovation and productivity due to overseas investment activities. This paper aims to examine how the host country affects reverse technology spillover from OFDI. The findings show domestic innovation performance (DIP) is positively related to OFDI in developed countries while it is negatively related to OFDI in transitional and emerging markets. It is also found that financial development and human capital weaken the positive relationship between OFDI in developed countries and DIP and also weaken the negative relationship between OFDI in transitional and emerging markets and DIP. These results are further confirmed through robustness checks.
AB - The existing literature has explored the existence of reverse technology spillover through outward foreign direct investment (OFDI), which means domestic firms improve their technological innovation and productivity due to overseas investment activities. This paper aims to examine how the host country affects reverse technology spillover from OFDI. The findings show domestic innovation performance (DIP) is positively related to OFDI in developed countries while it is negatively related to OFDI in transitional and emerging markets. It is also found that financial development and human capital weaken the positive relationship between OFDI in developed countries and DIP and also weaken the negative relationship between OFDI in transitional and emerging markets and DIP. These results are further confirmed through robustness checks.
KW - Outward foreign direct investment
KW - technological innovation
KW - technology spillover
KW - technology transfer
UR - http://www.scopus.com/inward/record.url?scp=85048831496&partnerID=8YFLogxK
U2 - 10.1080/09537325.2018.1485890
DO - 10.1080/09537325.2018.1485890
M3 - Article
AN - SCOPUS:85048831496
SN - 0953-7325
VL - 31
SP - 81
EP - 95
JO - Technology Analysis and Strategic Management
JF - Technology Analysis and Strategic Management
IS - 1
ER -
