Do Outward Foreign Direct Investments Enhance the Capabilities of China’s Domestic Innovation？ ——Based on Provincial Panel Data from 2004 to 2010
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Abstract This paper examines the impact of reverse technology spillovers of OFDI on China’s domestic innovation abilities based on knowledge production function, using provincial panel data from 2004 to 2010. We find that China’s OFDI has positive effects on the domestic innovation abilities measured by patent authorization. Further study reveals that OFDI has remarkable positive effects on the design patents and the utility model patents which represent lower level of innovation. But for the domestic invention patents which contain higher level of innovation, the results are different in different regions. OFDI has remarkable positive effects in the eastern region. While in the central and western regions, OFDI does not have significant effects on domestic invention patents. Differences in the scale of OFDI, types and motives of the investment enterprises and independent R&D activities are the main causes of these results.
SHA Wen-Bing. Do Outward Foreign Direct Investments Enhance the Capabilities of China’s Domestic Innovation？ ——Based on Provincial Panel Data from 2004 to 2010. Economic Survey, 2015, 32(6): 054.
2015, Vol. 32 
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