Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China

This research adds to the literature studying the effects of outward foreign direct investment (OFDI) on domestic innovation performance and the moderating effect of a technology gap between host and home countries. New definitions of observed technology gap and expected technology gap are proposed....

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Main Authors: Hong, J., Zhou, C., Wang, R., Wu, Y., Marinova, Dora
Format: Journal Article
Language:English
Published: WILEY 2019
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/88222
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author Hong, J.
Zhou, C.
Wang, R.
Wu, Y.
Marinova, Dora
author_facet Hong, J.
Zhou, C.
Wang, R.
Wu, Y.
Marinova, Dora
author_sort Hong, J.
building Curtin Institutional Repository
collection Online Access
description This research adds to the literature studying the effects of outward foreign direct investment (OFDI) on domestic innovation performance and the moderating effect of a technology gap between host and home countries. New definitions of observed technology gap and expected technology gap are proposed. An observed technology gap captures the existing differences in technology level between establishments, regions or countries. An expected technology gap is an indication of the effort of imitating and learning from technology leaders. The corresponding measures and effects of observed and expected technology gaps on OFDI-induced reverse technology spillover are analyzed. OFDI in developed countries promotes innovation performance. However, OFDI in emerging markets hampers innovation performance. It is also found that regions with a wider observed technology gap and a narrower expected technology gap can benefit more from OFDI.
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institution Curtin University Malaysia
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language English
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publishDate 2019
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spelling curtin-20.500.11937-882222022-08-22T04:52:09Z Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China Hong, J. Zhou, C. Wang, R. Wu, Y. Marinova, Dora Social Sciences Economics Business & Economics innovation performance outward foreign direct investment reverse technology spillover technology gap MULTINATIONAL-ENTERPRISES PRODUCTIVITY FDI GROWTH This research adds to the literature studying the effects of outward foreign direct investment (OFDI) on domestic innovation performance and the moderating effect of a technology gap between host and home countries. New definitions of observed technology gap and expected technology gap are proposed. An observed technology gap captures the existing differences in technology level between establishments, regions or countries. An expected technology gap is an indication of the effort of imitating and learning from technology leaders. The corresponding measures and effects of observed and expected technology gaps on OFDI-induced reverse technology spillover are analyzed. OFDI in developed countries promotes innovation performance. However, OFDI in emerging markets hampers innovation performance. It is also found that regions with a wider observed technology gap and a narrower expected technology gap can benefit more from OFDI. 2019 Journal Article http://hdl.handle.net/20.500.11937/88222 10.1111/cwe.12272 English WILEY fulltext
spellingShingle Social Sciences
Economics
Business & Economics
innovation performance
outward foreign direct investment
reverse technology spillover
technology gap
MULTINATIONAL-ENTERPRISES
PRODUCTIVITY
FDI
GROWTH
Hong, J.
Zhou, C.
Wang, R.
Wu, Y.
Marinova, Dora
Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China
title Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China
title_full Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China
title_fullStr Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China
title_full_unstemmed Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China
title_short Technology Gap, Reverse Technology Spillover and Domestic Innovation Performance in Outward Foreign Direct Investment: Evidence from China
title_sort technology gap, reverse technology spillover and domestic innovation performance in outward foreign direct investment: evidence from china
topic Social Sciences
Economics
Business & Economics
innovation performance
outward foreign direct investment
reverse technology spillover
technology gap
MULTINATIONAL-ENTERPRISES
PRODUCTIVITY
FDI
GROWTH
url http://hdl.handle.net/20.500.11937/88222