Does China’s OFDI Successfully Promote Environmental Technology Innovation?

Bing Han,Zhile Yang

doi:10.1155/2021/8389560

Abstract

Environmental technology innovation is a crucial measure of the quality of China’s economic development and sustainable environmental protection. Based on the 2009–2017 provincial panel data from China, this article used the modified projection pursuit model to measure the environmental technology innovation capabilities of various regions. Moreover, this article empirically investigates the threshold effect of outward foreign direct investment on China’s environmental technology innovation under different intellectual property protection levels. The results are as follows. First, the environmental technology innovation capabilities of China’s regions vary significantly, showing an “east-middle-west” gradient decline trend similar to levels of economic development. Second, outward foreign direct investment has a significant reverse environmental technology innovation effect, but this effect has complex nonlinear characteristics. Third, in the process of outward foreign direct investment affecting environmental technology innovation, intellectual property protection has a significant double threshold effect. As the level of intellectual property protection continues to cross the threshold value, the effect direction of outward foreign direct investment on environmental technology innovation undergoes a sudden change from inhibition to promotion. However, when intellectual property protection is too high, the promotion effect is relatively limited. This paper provides some reference points and insights that should aid in establishing a scientific intellectual property protection system and raising the level of environmental technology innovation.

Highlights

Introduction e continuous growth ofChina’s industrial economy has accelerated the emergence of environmental crises, including the energy crisis, the ecological crisis, and the climate change crisis
Investment is closely related to institutional environments, and intellectual property protection (IPP) is shared among the most critical institutional settings for enterprises to conduct Outward foreign direct investment (OFDI) [1, 2]. e deepening of the economic globalization has made the role of intellectual property increasingly crucial in industrial competition, and the intellectual property system has become an endogenous variable of transnational corporations’ direct investment
We found that the existing literature mostly focuses on the impact of OFDI on either technological innovation or environmental pollution

Summary

Introduction

China’s industrial economy has accelerated the emergence of environmental crises, including the energy crisis, the ecological crisis, and the climate change crisis. Erefore, China and other developing countries must seek to bolster environmental technology innovation (ETI) to promote intensive economic development. Outward foreign direct investment (OFDI) is among the most effective ways for home countries to obtain the advanced technology, scarce resources of host countries, expand the international market, and improve the operating efficiency of enterprises. Investment is closely related to institutional environments, and intellectual property protection (IPP) is shared among the most critical institutional settings for enterprises to conduct OFDI [1, 2]. E deepening of the economic globalization has made the role of intellectual property increasingly crucial in industrial competition, and the intellectual property system has become an endogenous variable of transnational corporations’ direct investment Investment is closely related to institutional environments, and intellectual property protection (IPP) is shared among the most critical institutional settings for enterprises to conduct OFDI [1, 2]. e deepening of the economic globalization has made the role of intellectual property increasingly crucial in industrial competition, and the intellectual property system has become an endogenous variable of transnational corporations’ direct investment

Results

Discussion

Conclusion