The Study Of The Location Choice Of MNC's R&D Investment In China

Since the 20th century 70's, with the development of world economy integration and the technology globalization, multinational corporations have developed R&D investment outside their home country. During the process of internationalization and globalization of MNCs'R&D investment, as the greatest developing country, provided with an environment of stable politics, high speed of economy development and huge market, fine infrastructure, rich and cheap labor force. China has become the hot spot region of MNCs'R&D investment . The quantity of the R&D organization established by Multinational Corporation is increasing, according to the statistics from department of commerce of PRC, had been more than 750 since the beginning of 2006. The MNCs'R&D investment has brought China R&D capital, advanced technology, knowledge and management expertise, each area hopes to attract more MNCs'R&D organization. It is quite essential to analyze the influence factors of location choice of MNCs'R&D organization with the economic theory and to propose some policy suggestions.Therefore, it is significant to research this question theoretically and practically. The frame of this paper is divided into introduction, theory comment, analysis of present situation, the empirical study, analysis of suggestions and conclusion. Based on the theory, it is concluded by the analysis of present situation that MNCs'R&D investment mainly concentrated in US, Europe and Japan at the beginning of 1990s; started to diffuse to some emerging industrialized countries and the developing countries since latter 1990s. The MNCs'R&D investment in China started from the 1990s. Although the course is not long, it developed rapidly. The MNCs'R&D organization in China mainly distributes in Shanghai,Beijing,Shenzhen and Guangzhou. The reason of setting up R&D organization in China by MNCs is huge market and high quality and inexpensive scientists and technicians mainly. Through the empirical study, this paper made a conclusion that the level of infrastructure,the regional cost of labor force,FDI scale,local level of economical development,the condition of scientists and technicians as well as the government protection for knowledge can affect the location choice of MNCs'R&D organization . According to these conclusions, the author puts forward to some suggestions.This paper studied with the union of theoretical analysis and empirical analysis. In the part of theoretical analysis, this paper references the theory thought of scholars in the relational research area and attempts to find out influence factors which affected the location choice of MNCs'R&D organization, and provide some decision suggestion and lays the rationale for the empirical analysis. In the part of empirical analysis, this paper use the software of E-views and SPSS to analyze the correlation ship between the influence factors of MNCs'R&D organization's location choice with regression, make a further analysis of factors of location choice of MNCs'R&D organization with multi-variance linear regression and factor analysis after rejecting the non-remarkable factor. Moreover, this paper describe the character and spatial distribution with much data from cases and graphs and table as study method which make the expatiation of study object more direct and exact and strengthen the persuasion of analysis.Because the empirical study product about the location choice of MNCs'R&D organization in China is less and study material, study fund and my ability is limited, there are some shortages in this paper. It'll be the author's next study direction.