Chinese firms' outward direct investment: Technological innovation mechanisms, organizational modes, and improving strategies

Abstract

AbstractAlthough Chinese outward direct investment (ODI) started late, it has increased rapidly. China is gradually changing from the receiver of foreign direct investment (FDI) to the exporter of ODI. With the advent of the era of knowledge economy, knowledge and innovation have become the core elements of organizational competitive advantages. The practice of current international direct investment shows that it is difficult to acquire advanced technologies only by means of the introduction of FDI: The development of ODI is an important way to obtain foreign advanced technologies. Chinese firms' ODI faces some problems in technological innovations, and the total of technology‐sourcing ODI is not large. This article focuses on the technological innovations of Chinese firms' ODI, discusses technological innovation mechanisms and organizational modes of Chinese ODI firms, and presents the technological innovation framework and strategies to strengthen the technological innovation advantage of Chinese ODI firms. © 2010 Wiley Periodicals, Inc.