| In the last twenty years innovation networks, co-operation and research joint ventures have become important in order to expand firms' resources of innovation and to strengthen innovative activities. FDI includes corporate activities such as businesses building plants or subsidiaries in foreign countries, and establishing innovation network with economic organizations in host countries. Not only have developing countries taken active part in the international division of manufacturing, but also have been members of innovation network of foreign enterprises of hi-tech, For seven years in a row, China has been the developing country with the biggest amount of FDI utilization. On the base of theory, the entry of FDI and MNCs benefits the development of the enterprises of the host country. But the experiences from different countries differ from each other and don't coincide with it.The motives of this research are as following:1, To explain the motives of foreign enterprise to establish the innovation collaborationnetwork in host country.2, To illustrate the factors which influence the innovation collaboration network betweenforeign enterprises and the economic and other organizations on the host country.This paper is to encourage Chinese enterprises to be involved in the innovation network of foreign enterprises of hi-tech to better utilize international resources.Summarizing, the paper presents initial results as following:1, The factors which influence the innovation collaboration network between foreign enterprises and the economic and other organizations on the host country are from three perspectives. Firstly the network depends on the characteristics of foreign enterprises, including the advantages of technology, the type of R&D, strategy, autonomy and so on. Secondly the characteristics of hi-tech industrial cluster in the host country also should be taken into account, including the absorb capability, maturity of cluster, government policy, etc. Thirdly the characteristics of industries also influence the innovation network.2, There are some differences between innovation collaboration network of foreign enterprises in developing countries and developed countries. Foreign enterprises show more activities in establishing innovation networks in developed countries and the technology transfer in network is bi-directional. And in developing countries fewer foreign enterprises establish innovation relationship with local institutions and the technology transfer in network is uni-directional.3 , This research investigates the innovation collaboration network of foreign enterprises in Pudong New Area of Shanghai. The features of the network are relatively high dependence on external resources and weak embeddedness with local resources. On one hand the foreign enterprises obtain information of innovation from their parent companies; on the other hand the collaboration with local higher educational institutes and technology and research institutes is on the early stage. The lack of enough venture investment and high-quality labor force such as senior manager and sophisticated experts are the main disadvantages of innovation environment, restraining the enterprises' innovation activities in Shanghai.Some differences are interpreted with respect to specific characteristics of biotechnology and pharmaceutical industry and electronic Information Industry, including the structure of innovation collaboration network and density of the network. |