Technology Transfer Spillover from FDI-A Comprehensive Literature Review

Technology can be transferred between countries through different channels such as international trade, foreign investment and contract transfer.The direct impact of foreign investment on business efficiency has made foreign investment create a positive spillover effect for local enterprises and become the most important international tool for enterprise technology transfer.This research reviews recent literature on the conceptualization, measurement and the mechanism of FDI spillover.It also reviews the factors that affecting the technology transfer spillover from FDI.With the industrial transfer, the pace of global processing industry shifting to Southeast Asian countries or regions is accelerating, and the desire of countries in the region to introduce production technology is very urgent.The implications justify the importance of technology transfer spillover as it benefit from competition of foreign firms as the competitive pressure induces domestic firms to use more efficiently their existing technologies, or search for new ones so that they are able to maintain their market shares.