Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments

China’s corporate venture capital (CVC) overseas investment began in the late 20th century and has expanded significantly over the years. By 2021, more than 265 Chinese institutions and companies had engaged in cross-border investments, contributing over USD 100 billion. These investments present a...

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Main Authors: Xiaoli Wang, Yi Tan
Format: Article
Language:English
Published: MDPI AG 2025-04-01
Series:International Journal of Financial Studies
Subjects:
Online Access:https://www.mdpi.com/2227-7072/13/2/63
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author Xiaoli Wang
Yi Tan
author_facet Xiaoli Wang
Yi Tan
author_sort Xiaoli Wang
collection DOAJ
description China’s corporate venture capital (CVC) overseas investment began in the late 20th century and has expanded significantly over the years. By 2021, more than 265 Chinese institutions and companies had engaged in cross-border investments, contributing over USD 100 billion. These investments present a unique opportunity to examine the reverse technology spillover effect on China’s technological development. Using a Difference-in-Differences model and regression analysis, we investigate whether China’s CVC overseas investments drive technological progress. Our findings reveal three key insights: (1) these investments have a positive impact on China’s technological advancement, (2) the effect is stronger when the host country has a higher level of technology, and (3) larger investment amounts amplify the impact. This research not only highlights the transformative potential of cross-border CVC investments but also demonstrates how enterprises can leverage reverse innovation spillovers to accelerate China’s technological progress. Additionally, we introduce a novel approach to studying this phenomenon, contributing to the existing scholarship on global innovation dynamics.
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publishDate 2025-04-01
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spelling doaj-art-8fbf84c84e224d0cbd00f26aff633e3e2025-08-20T02:21:10ZengMDPI AGInternational Journal of Financial Studies2227-70722025-04-011326310.3390/ijfs13020063Research on the Reverse Technology Spillover Effect from China’s CVC Overseas InvestmentsXiaoli Wang0Yi Tan1School of Management, Marist University, Poughkeepsie, NY 12601, USAAntai Collge of Economics & Management, Shanghai Jiaotong University, Shanghai 200030, ChinaChina’s corporate venture capital (CVC) overseas investment began in the late 20th century and has expanded significantly over the years. By 2021, more than 265 Chinese institutions and companies had engaged in cross-border investments, contributing over USD 100 billion. These investments present a unique opportunity to examine the reverse technology spillover effect on China’s technological development. Using a Difference-in-Differences model and regression analysis, we investigate whether China’s CVC overseas investments drive technological progress. Our findings reveal three key insights: (1) these investments have a positive impact on China’s technological advancement, (2) the effect is stronger when the host country has a higher level of technology, and (3) larger investment amounts amplify the impact. This research not only highlights the transformative potential of cross-border CVC investments but also demonstrates how enterprises can leverage reverse innovation spillovers to accelerate China’s technological progress. Additionally, we introduce a novel approach to studying this phenomenon, contributing to the existing scholarship on global innovation dynamics.https://www.mdpi.com/2227-7072/13/2/63corporate venture capital (CVC)overseas investmentreverse technology spilloverspatentstechnology level
spellingShingle Xiaoli Wang
Yi Tan
Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments
International Journal of Financial Studies
corporate venture capital (CVC)
overseas investment
reverse technology spillovers
patents
technology level
title Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments
title_full Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments
title_fullStr Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments
title_full_unstemmed Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments
title_short Research on the Reverse Technology Spillover Effect from China’s CVC Overseas Investments
title_sort research on the reverse technology spillover effect from china s cvc overseas investments
topic corporate venture capital (CVC)
overseas investment
reverse technology spillovers
patents
technology level
url https://www.mdpi.com/2227-7072/13/2/63
work_keys_str_mv AT xiaoliwang researchonthereversetechnologyspillovereffectfromchinascvcoverseasinvestments
AT yitan researchonthereversetechnologyspillovereffectfromchinascvcoverseasinvestments