Research Of MNEs' Technology Diffusion Effect In China

Taking both foreign and domestic researches as reference, this paper brings forward that the technology diffusion effect of MNEs' is a very important factor that affects technology advancement of China. Based on the classification of direct diffusion effect and indirect diffusion effect, this paper analyzes the different channels that can produce technology diffusion and some factors that restrain the diffusion effect. After that, according to the 14 years statistical data of FDI in China, a demonstration model is set up to examine the conditions of technology diffusion effect. It analyzes the correlation between national productivity and technology diffusion relative factors, such as FDI, human capital and R&D devotion. This demonstration research shows that MNEs' direct investment do have diffusion effect in China, the factors of human capital, ratio of employment and scale of MNEs play important roles in the improvement of social productivity. So it becomes an important task and problem to take advantage of active effect of MNEs' direct investment in China and obtain advanced technology quickly. Accordingly, some countermeasures and suggestions are given for making good use of the MNEs' present abundant investment, consolidating the technology diffusion effect, promoting our technology innovation through absorbing enough excellent FDI enterprises and inducing technology transferring and spilling.