Research On Technological Spillover Effects Of MNCs' R&D Units In China

With the rapid development of the economy globalization and increasing fierce international competition , R&D (research and development) is becoming a more and more important method for MNCs(multinational companies ) to get higher profits and improve their competitive capabilities .Since 1980, MNCs have begin to increase their R&D investment overseas rather than traditionally concentrate their R&D activities around their mother country . And after 1990,the trend of R&D globalization turned to be more obvious , more and more R&D unites have been established overseas .At the same time ,along with the rapid development of Chinese market-economy ,more and more MNCs began to set up their R&D units in china ,which formed a R&D investment fever especially after 1997.The establishment of MNCs' R&D units in china is the result of the interactions between the internal motivations and external environment. The MNCs' R&D unites established in china generate more technological spillover effects which our companies can benefit from . This paper will discuss and evaluate the technological spillover effects caused by the R&D units . Firstly , the paper explains the motivations of MNCs R&D globalization theoretically, including traditional FDI theories and modern knowledge theory , then analyzes the motivations of R&D globalization and the essential of MNCs' R&D unites in china from the mirco-level and meso-level, it is believed that one of the purpose of R&D global investment is that the MNCs can take full advantage of science and technology resources of the different countries ,which help MNCs to maintain their technology monopoly advantages through merging science and technology resources globally ,all these can assist MNCs to establish competitive advantages globally . Secondly ,from the view of the approaches and impact factors of the spillover effects ,combining the data of 19 MNCs which established R&D unites in china ,the paper discusses and evaluates the spillover effects caused by the MNCs' R&D unites in china .lastly ,the paper issues some corresponding political suggestions for generating more technological spillover effects .