Abstract

This paper analyzes the impact of outward foreign direct investment (OFDI) reverse technology spillover on regional innovation capabilities in China. The study utilizes provincial panel data from 2004–2020 and employs the spatial Dubin model to analyze and test the spatial spillover effects of OFDI reverse technology spillover, while also decomposing the direct and indirect effects. The findings reveal that regional innovation capacity itself has a spatial spillover effect, and reverse technology spillover has a positive direct and spatial effect on the region's innovation capability. Based on these results, the paper offers recommendations for China's future development of regional innovation capability and foreign investment.

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