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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MDPI AG
2025-04-01
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| Series: | International Journal of Financial Studies |
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| 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. |
| format | Article |
| id | doaj-art-8fbf84c84e224d0cbd00f26aff633e3e |
| institution | OA Journals |
| issn | 2227-7072 |
| language | English |
| publishDate | 2025-04-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | International Journal of Financial Studies |
| 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 |