How to promote green technology innovation has attracted the attention of governments and academia at present. The 19th National Congress of the Communist Party of China pointed out that, we should accelerate green development and promote enterprises to carry out green technology innovation. Some scholars have begun to explore how to speed up green technology innovation from different dimensions, such as environmental regulation and government support, including OFDI as one important channel of international technology spillover. Under one belt and one road construction, the strategy of "going out" are being pushed forward. China has become the second largest OFDI country in the world, and it has profound impact on both the world′s economic development and itself. It is particularly noteworthy that the adverse effects of rapidly growing OFDI on domestic green technology innovation cannot be ignored. Unfortunately, the research on the relationship between OFDI and green technology innovation in China is just in beginning, and there is still a lot of controversy, especially the lack of heterogeneous dynamic response based on the nonlinear perspective to explore the impact of OFDI on the efficiency of domestic green innovation. As well, does the rapid increase of OFDI reverse promote the efficiency of green innovation in China, and what is the effect? If there is a positive impact, how can it be strengthened? What are the dynamic evolution characteristics and internal constraint mechanism of OFDI′s reverse green innovation effect? We need objective answer to the above questions with great significance to China′s strategic coordination of opening up and green development.

  Literature analysis shows that, there is no consensus on whether OFDI reversely promotes green innovation in home country, and further research is necessary. In particular, there are still some shortcomings. Firstly, most scholars mainly study the relationship between OFDI and home country green innovation from a linear perspective, but pay less attention to the nonlinear dynamic effect of OFDI reverse green innovation. Secondly, the existing research on how to effectively release the regulatory factors of OFDI reverse green innovation spillover is very limited, especially the lack of heterogeneous dynamic constraint mechanism of OFDI reverse green innovation spillover in China. The main innovation of this paper is that, from the perspective of heterogeneous nonlinear dynamics, it provides a new perspective for a deep understanding of the internal evolution mechanism of China′s OFDI reverse green innovation spillover, and also provides some policy implications for China to correctly the dynamic relationship between OFDI and domestic green innovation in China new era.

  Based on Chinese 2004-2017 inter-provincial panel data, and using the threshold regression technology, this paper empirically examines the heterogeneous dynamic effects of OFDI′s reverse green innovation and its regulatory mechanism. The study results shows that: OFDI has significantly promoted domestic green innovation efficiency, and the reverse green innovation spillover of OFDI in the eastern and central regions is significantly stronger than the western region; OFDI′s reverse green innovation spillover shows dynamic evolution process from weak to strong, but only appears in the western region, and the central and eastern regions show positive "U"-shaped nonlinear characteristic; OFDI′s reverse green innovation spillover has heterogeneous dynamic strengthening mechanism. Under the constraints of industrial upgrading, urbanization, financial development, and intellectual property rights protection, there is positive and increasing marginal efficiency evolution process. Both IPR protection and trade opening are regulated with inverted "U"-shaped dynamic characteristics. At this stage, only by continuously accelerating industrial upgrading and urbanization, continuously strengthening financial support and intellectual property protection, while maintaining moderate level of trade opening and government science and technology funding, OFDI′s green innovation spillover could be released in maximum.

  The conclusions of this paper reveal the following policy implications: firstly, under one belt and one road construction, as well as opening up policy will continue to enhance the OFDI scale to promote green innovation development in the opposite direction. OFDI has become the main driving force for the development of green innovation in China. At the same time, we should implement more targeted regional policy on the relationship between OFDI and green innovation, especially focus on releasing the spillover bonus of OFDI reverse green innovation in the East and central region, while the west region should pay more attention on its own absorption capacity building. Secondly, China′s OFDI reverse green innovation spillover has dynamic evolution characteristics of positive and increasing marginal efficiency, but functions in different regions. We should pay attention on the heterogeneous dynamic characteristics. The effect of OFDI reverse green innovation spillover in the eastern and central region is quite significant, there is still a large space for improvement in the positive impact. Although the negative green innovation effect of OFDI in the western region has the nonlinear characteristics of positive and increasing marginal efficiency, the positive effect is relatively limited at this stage. In the future, we should implement differentiated and dynamic OFDI and green innovation policies to avoid the loss of OFDI′s reverse green effect caused by homogenization and static policies. Thirdly, we should continue to improve the spillover effect of OFDI′s reverse green innovation by accelerating the process of industrial upgrading and urbanization, strengthening financial support, government funding for science and technology, intellectual property protection, and promoting trade opening in long term, we should also make trade openness and government funding for science and technology at a moderate level. In addition, the dynamic strengthening effect of above factors on OFDI′s reverse green innovation spillover should not be ignored. In additional to government funding and trade openness, other factors on OFDI reverse green innovation spillover are not effective. Therefore, in order to adjust the relationship between OFDI and green innovation scientifically in China new era, we should pay more attention to the integration of OFDI and the above factors, to release the reverse green innovation spillover bonus of OFDI in maximum.