The Study On Technical Innovation Of Subcontracting Enterprises And Going Beyond International Outsourcing Trap

Since 1990s, international outsourcing activities bring opportunities for developing countries to participate in international division system and share configuration of global resources. International outsourcing has ascended manufacturing ability of developing countries in low-end industry, while subcontracted enterprises have not pay much attention to technical innovation and only own low innovation ability. High manufacturing ability and low innovation ability have affected developing countries to get transfer of higher industry and more division benefits. If subcontracting enterprises lack technical innovation motivation and neglect cultivating technical innovation ability, subcontracting enterprises is apt to fall into international outsourcing trap for long term, which will have bad effects on the escalation of industry and competitiveness of developing countries.This paper puts forward that dependences on technology provided by clients enterprises and low labour quality are main reasons why subscontracting enterprise is apt to falling into international outsourcing trap. International outsourcing trap means that technical gap and marginal productivity gap between subscontracting enterprises in developing countries and clients enterprises in developed countries is bigger gradually and very difficult to bridge, which will lead subscontracting enterprises to falling into malignant cycle of low marginal productivity——low value chain——no or less R&D——lower labour quality. This paper regards technological innovation is the basic way to realize going beyond international outsourcing trap and also sums up one-foot, two-feet, leapfrogging models.First, this paper interpretes connotation of international outsourcing trap, on the basis of which, it builds a model to analyze the performance of international outsourcing trap and discusses the mechanism of technical innovation of subcontracting enterprises for going beyond of international outsourcing trap. Then, this paper regards technical accumulation, demand, cooperation as important forces to promote technical innovation of subcontracting enterprises. By analyzing the path of technical accumulation, building model of demand-induced technical innovation, giving game analysis on cooperation and technical innovation, this paper tries to perfect discussion of establishing international outsourcing trap. Specifically, technical accumulation is the basis of technical innovation and technical study is the key path to technical accumulation. Demand will motivate technical innovation. Subcontracting enterprises should enhance the exchange with demand of entrusting enterprises. With the further outgoing of international outsourcing activities, subcontracting enterprise may cultivate demand of domestic market in order to escape whole dependence on demand of entrusting market. The cooperation between subcontracting enterprises and entrusting enterprises will promote technical innovation of subcontracting enterprises. At last, this paper makes a case study on Foxconn Group to deepen its theory analysis.