Empirical Study on the Relationship between Reverse Investment of Chinese Enterprises in Developed Countries and Independent Innovation

Why do Chinese enterprises short of monopolistic advantages make large-scale direct investment in developed countries? Is this direct investment related to gaining international scientific and technological resources? Using the statistics data from 1990 to 2005, this paper carries out an empirical study on the relationship between reverse investment of Chinese enterprises in developed countries and independent innovation capability, and finds that there are both stable positive correlation and causal relationship between reverse investment of Chinese enterprises in developed countries and independent innovation capability. The demonstration shows that through direct investment in developed countries by means of building plants abroad, transnational merger and acquisition, setting research & development centers abroad, etc., Chinese enterprises may gain international scientific and technological resources and facilitate independent innovation.