A Study on the Impact of Technical Innovation on Firms' Location Risk Selection for Multinational Investment

Abstract

Global economic growth is expected to decline due to the epidemic, increasing the risk for companies in host countries. Under the increasingly tense international situation, countries attach importance to investment and development in frontier science and technology fields. Then whether the technical innovation capability possessed by Chinese enterprises will affect the location risk selection of multinational investment to a certain extent. This paper studies the impact of technical innovation on the location risk choice of multinational investment from the micro perspective, aiming to guide enterprises to make multinational investment with high quality, follow the development path of China's multinational investment location risk choice, so that enterprises can effectively reduce the impact of host countries’ location risk in multinational investment decision. The purpose of this study is to provide a reliable reference for other developing countries to make international direct investment based on technical innovation capability.