Exploring the Adverse Impacts of Foreign Investment Holding and Legal Measures on Technology Innovation in Enterprises

Abstract

This paper delves into the negative effects of foreign investment holding and associated legal measures on technology innovation within enterprises. While foreign investment can bring capital infusion and market access, it can also introduce challenges to indigenous innovation capabilities, technological independence, and intellectual property protection. Through a comprehensive analysis of case studies, regulatory frameworks, and empirical data, this study examines how foreign investment holding and legal measures, such as intellectual property regulations and competition policies, can hinder technology innovation efforts in domestic enterprises. The research identifies various mechanisms through which these factors impede innovation, including technology transfer restrictions, knowledge leakage, stifling of competition, and disincentives for domestic research and development (R&D) investments. Furthermore, the paper explores the role of government policies, industry dynamics, and institutional environments in mediating the impact of foreign investment on technology innovation. By shedding light on the adverse effects of foreign investment holding and legal measures, this research aims to inform policymakers, business leaders, and stakeholders about the challenges and risks associated with foreign investment in the context of technology innovation. The findings provide insights for designing effective regulatory frameworks, investment strategies, and innovation policies to safeguard domestic innovation capabilities and promote sustainable economic development.