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    Outward foreign direct investment and domestic innovation performance: evidence from China

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    Authors
    Zhou, C.
    Hong, J.
    Wu, Y.
    Marinova, Dora
    Date
    2018
    Type
    Journal Article
    
    Metadata
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    Citation
    Zhou, C. and Hong, J. and Wu, Y. and Marinova, D. 2018. Outward foreign direct investment and domestic innovation performance: evidence from China. Technology Analysis and Strategic Management. 31 (1): pp. 81-95.
    Source Title
    Technology Analysis and Strategic Management
    DOI
    10.1080/09537325.2018.1485890
    ISSN
    0953-7325
    School
    Sustainability Policy Institute
    URI
    http://hdl.handle.net/20.500.11937/69830
    Collection
    • Curtin Research Publications
    Abstract

    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.

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