Technological spillovers of foreign-invested enterprises and technological progress of domestic enterprises: A panel study of Chinese manufacturing Industry

Foreign-invested enterprises could bring technological spillover to domestic enterprises through multiple channels, such as demonstration effect, competition effect, linkage effect and training effect, which could promote the indigenous innovation and productivity of the enterprises in the host countries. The paper reveals two facts by empirical analysis. On one side, the introduction of FDI promotes domestic R&D investment and the technology import. On the other side, the increase of R&D foreign investment squeezes domestic investment of human capital to a certain extent. However, the foreign investment of human capital does not squeeze the domestic investment of human capital.