Effects Of Multinational Corporations’ Technology Transfer On The Innovation Performance Of Manufacturing Green Innovation System

To address the issues faced by the manufacturing sector,’Made in China 2025’ takes "innovation promotion" and "green development" as a basic principle to propose on "persistence of positioning innovation at the core of the entire development of the manufacturing industry to follow the path that promotes innovation" and "persistence of taking sustainable development as a main force for establishing a developed manufacturing country to construct green manufacturing system and to draw comments on green issues". Green innovation, as a joining point between "innovation promotion" and "green development", has ever become more significant than any periods in the history of the development of the Chinese manufacturing industry. Constructing green innovation system and increasing green innovation performance have become the key in tackling environmental issues and in realising green development for the manufacturing industry. However, in the open economy system, the green innovation system and the green innovation performance of the Chinese manufacturing industry are increasingly affected by the external environment particularly by multinational corporations’technology transfer.Therefore, in the open economy environment, studying the influence of multinational corporations’technology transfer on green innovation system and innovation performance of the Chinese manufacturing industry has a great theoretical and practical significance in terms of increasing innovation performance by fully taking advantage of multinational corporations’ technology transfer; and the speeding-up of effective manufacturing technology upgrade as well as realising sustainable development under the national development strategies of "innovation promotion" and "One Belt One Route construction". Based on the above background of China, this study aims at evaluating the effects of multinational corporations’ technology transfer upon the innovation performance of manufacturing green innovation system, and aims at providing theoretical references and practical guidance to improve the performance and development of manufacturing green innovation system.Apart from reviewing relevant literature relating to multinational corporations’ technology transfer and innovation performance of green innovation system, this study mainly analyses the effects by multinational corporations’ technology transfer on the green innovation performance of the manufacturing green innovation system. Definitions such as multinational corporations’ technology transfer and innovation performance of green innovation system are also made in the study, illustrating and analysing the influential factors of content and methods of multinational corporations’ technology transfer, and the content, features of innovation performance within the manufacturing green innovation system. This study also involves the influential factors, such as technology spillover, social capital and absorbtive capacity and portrays a systematic analysis of these factors. Finally, a green innovation system influential model is constructed based on the features of manufacturing green innovation system.The study further constructs a model of the influential factors from multinational corporations as regards the innovation performance of manufacturing green innovation system. Sampling the data from 28 different manufacturers from 2005 to 2011, an empirical analysis is performed to evaluate the innovation performance of manufacturing green innovation system by using the grey association analysis method. The result indicates that multinational corporations’ technology spillover is the most influential factor for the innovation performance of manufacturing green innovation system. The second influential factor is the absorptive capacity of the green innovation system and the third factor is social capital in manufacturing green innovation system. In comparison, the above three factors are more influential to multinational corporations’ technology transfer than to innovation performance of manufacturing green innovation system.Taking into account the effect of multinational corporations’ technology spillover, and the green innovation system’s social capital and absorptive capacity, a conceptual model and evaluation criteria system of the effects of multinational corporations’ technology transfer to innovation performance of manufacturing green innovation system is formed and puts forward the research hypothesis. Then, an empirical analysis is performed by Structural Equation Model. The results indicate that multinational corporations’technology spill-over has positive effects on the innovation performance of manufacturing green innovation system. Multinational corporations’technology spillover, the social capital and absorptive capacity of the green innovation system, all play a positive role in the impact of multinational corporations’ technology on the innovation performance of manufacturing green innovation system. By contrast, the effects of multinational corporations’technology spillover are the most significant, the second is the social capital of the green innovation system, and the third is the absorptive capacity of the same. The different methods of multinational corporations’ technology transfer have different influences towards multinational corporations’ technology spillover and the aforesaid social capital and absorptive capacity.It is very significant in using multinational corporations’ technology transfer to promote innovation performance of green innovation system in Chinese manufacturing, that evaluation of the effects of multinational corporations’ technology transfer on green innovation performance of manufacturing green innovation system should be conducted scientifically under the conditions of an open economy. On the basis of analyzing the effects of multinational corporations’ technology transfer, multinational corporations’technology spillover and the social capital and absorptive capacity of the green innovation system, the effects evaluation index system was established. Then, based on panel data drawn from twenty-eight manufacturing industries between 2005 and 2011, an empirical analysis is performed to evaluate the effects on innovation performance of the manufacturing green innovation system by multinational corporations’ technology transfer using a RAGA-PPE model, whilst visualization study on the evaluation result is carried out using a radar map. Furthermore, analysis of the industrial difference among manufacturing green innovation system is conducted through a traditional point of view alongside multinational corporations’technology transfer to evaluate its effects to innovation performance of manufacturing green innovation system in different circumstances.According to the analysis of theory and empirical research results, through improving the performance of multinational corporations’technology transfer, better leadership for taking advantange of multinational corporations’technology spillover, the strengthening of green innovation system social capital and an increase in the absorptive capacity of the same, a wealth of advice and new policy can be raised which will in turn improve innovation performance of manufacturing green innovation system.This study provides an evaluation of multinational corporations’technology transfer effects upon innovation performance of manufacturing green innovation system and aims at providing theoretical references and practical guidance to improve the performance and development of Chinese manufacturing green innovation system. The results of the study is also adopted for forming policies at relevant institutes for scientific decisions, and for cultivating a positive environment beneficial for Chinese manufacturing green innovation system that will better absorb and take advantage of multinational corporations’ technology transfer.