The Analysis Of Multinational Corporations' Role In Enhancing The Technological Competence Of Our Enterprises

With multinational companies changing to technical and knowledge-intensive, the international division has shown new features, namely the division of functions within the product-R&D, design, manufacturing and marketing. Multinational companies play a leading role in this global value chain. They distribute various activities in this value chain to the countries and regions which rates of input and output is highest in order to achieve the integration of global resources and markets.Because the technological competence is weak, China's enterprises are often at a disadvantage in the international division. Most companies are limited in the manufacturing sectors which value-added are lowest. Although it conforms to our enterprises'current comparative advantage, but in the long run, if we do not pay attention to accumulate our technical competence and elevate the technical level, we will surely be out of competition. In addition, the transition of economic growth from extensive to intensive also relies on the continuous improvement of technical competence.As a latest tech country, it is difficult for our businesses to shorten the gap with developed countries and achieve a leap in technological development only by independent innovation. The successful experience of many newly industrialized countries confirms that improving the technical competence along the global value chain is a practical choice for developing countries. Because multinational corporations hold 80% advanced technology of the World, Chinese enterprises can track development trend of advanced technologies in time and absorbing multinational technological spillovers by embedding its value chain.Based on the product value chain, article divides the role of multinational corporations in enhancing the technological competence of Chinese corporations into two forms-the process of manufacturing sector transfer and R & D investment. By analyzing the role of these two forms in manufacturing capacity and R & D capabilities of our enterprises, this paper presents a theoretical model of enhancing Chinese corporations' technological competence and makes key factors concrete. It also think the quantity and quality of technology provided by multinational companies, their R & D activities in China, and Chinese enterprises'internal efforts play a key role in enhancing the technological competence. At last, through the empirical analysis, this paper verifies these theories and also made relevant recommendations on how to maximize the use of technological spillover effects of MNCs.Article firstly uses the inductive method to research the study and present situation. Then, it builds an evaluation system of multinational corporations about enhancing the technological competence of china by abstract model. Lastly, it uses statistical analysis softwarel3.0 to make data normalization, correlation analysis and establish regression model in order to verify theoretical assumptions. This paper discusses the role of multinational companies in enhancing the technical competence of Chinese enterprises from various angles.The purpose of this article is to study the function of multinational companies' outsourcing manufacturing and R & D investment in manufacturing capacity and R & D capabilities of our companies. Through theoretical and empirical analysis, this paper discusses the importance of multinational corporations in the process of changing our inferior position in global value chain and enhancing our own technological competence. Most importantly, this paper emphasizes that Chinese enterprises must adapt to new trends in technological investment of the MNCs in China and make full use of their technology spillovers.