Technology Diffusion Of Multinational Companies

At present, under the background of economic globalization and integration, multinational companies promote the flow of such traditional production factors as capital and labor. Moreover, multinational companies play increasingly important role in global technology transfer and diffusion. Foreign researchers have taken up the study of technology diffusion since 1970s. The impact that technology diffusion of multinational companies made on host countries technology improvement becomes a hot research topic.This article is originated on the theory of technical diffusion of multinational companies, and referred to both domestic and overseas' academic achievement together with some real cases. It raises that the technology diffusion of multinational companies has positive effects and it's still the trend of economy development of our country and improvement of our own technology through continuous introduction of foreign investment and participation in the global supply chain.This article defines the definition of technology diffusion, technology transfer, technology spillover and relationship among them. It also analyzes the cooperation based on global supply chain. and FDI technology diffusion This paper specially analyses the four channels that can produce spillover effect. They are competition, imitation, contact and the flowage of labor. In addition, this article also introduces the establishment of R&D centers in China and their technology spillover. Further more, it indicates that technology diffusion . is restrained by level of human resource, the absorbency, the multinational companies' control to core technology, market environment, etc. Meanwhile, it suggests some resolutions to those restrictions.