Foreign direct investment and corporate innovation efficiency

LI Sihui1,2 YU Jinping1

(1.Nanjing University School of Economics)
(2.Institute of World Economy, Jiangsu Provincial Academy of Social Sciences)

【Abstract】Under the background of open economy, the article studies the mechanism of how the foreign direct investment affects the enterprises’ innovation efficiency. Based on the comprehensive analysis of OFDI reverse technology spillovers, the corresponding empirical model is established. The results show that corporate foreign direct investment can strongly promote innovation input and activate the entire innovation practice; however, it has a negative impact on the innovation efficiency and the innovation output of the enterprises is relatively insufficient. The practice of foreign direct investment changes the enterprises internal resource allocation path of innovation and helps imitation innovation play a leading role in the change of innovation efficiency.

【Keywords】 foreign direct investment (FDI); corporate innovation; technology spillovers; innovation efficiency;

【DOI】

【Funds】 National Social Science Fund Project (12BJL080) Jiangsu Province Social Science Fund Youth Project (15EYC007) Jiangsu Academy of Social Sciences Youth Project (QN1502)

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This Article

ISSN:1002-4670

CN: 11-1692/F

Vol , No. 12, Pages 28-38

December 2016

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Article Outline

Abstract

  • 1 Literature review
  • 2 Model setting and data sources
  • 3 Empirical analysis and conclusions
  • 4 Conclusion and policy revelation
  • References