China's Technology Innovation and Outward Foreign Direct Investment

Technology innovation is the eternal motive force of development. The paper analyzes OFDI (outward foreign direct investment) technological innovation effect in developing countries. Among them, considering the heterogeneity host countries, we emphatically analyzed the R&D feedback effect and the human capital incentive effect based on reverse technology spillover. With the helping of international R&D spillover model, the paper made the empirical tests use the provincial unit panel data from 2003 to 2011. Results show that OFDI has a weak positive effect on China's technological innovation and only for developed host country OFDI will generate significant reverse technology spillover. In general, its R&D incentive effect is more obvious than extrusion effect and its human capital incentive effect is not significant.