Keywords
foreign direct investment, host country factor, overseas innovation, threshold effect
Abstract
This paper attempts to verify the influence of OFDI on China's overseas innovation through mechanism analysis.Based on the panel data of 52 countries where China applied for patents overseas from 2006 to 2018,the threshold model is used to investigate how host country factors affect China's overseas innovation through OFDI. Research shows that under the influence of the host country's innovation level,institutional quality,and technological gap with the home country,OFDI has a "U-shaped"relationship with overseas innovation.The innovation level of host country has a negative impact on overseas innovation before reaching the inflection point,and has a positive impact after reaching the inflection point.The institutional quality of the host country's and the technological gap with the home country have a positive impact on overseas innovation before reaching the turning point,and negatively after this point.The degree of host country competition only positively affects overseas innovation linearly. This paper proposes that the host country factor has threshold effect on China's overseas innovation through OFDI, which has important theoretical and practical significance for China's overseas innovation.
DOI
10.16315/j.stm.2020.05.003
Recommended Citation
YAN, Chen; HUANG, Yuan-zhe; and GAN, Tian-lin
(2020)
"Threshold effect of OFDI on China's overseas innovation,"
Journal of Science and Technology Management: Vol. 22:
Iss.
5, Article 3.
DOI: 10.16315/j.stm.2020.05.003
Available at:
https://jstm.researchcommons.org/journal/vol22/iss5/3
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
