Study On Relationship Of The Technology Spillover Of Multinational Enterprises And The Development Of High-technology Industry In China

The scale of the introduction of foreign capital has being extended since Chinese reform. The strategy called"exchange technique with market" in last century, was hoped to acquire the advanced technique from abroad at the expense of losing some market. Because the high-technology industry stands for the most advanced part in China and the capital of absorbing of it is stronger than other industries,this paper select high-technology industry as the research object on the basis of analyzing the industry characteristics to search the relationship of the technology spillover of multinational enterprises and the development of high-technology industry in China.Recently the industries which have potential market space in China have tremendous attraction according to foreign capital after China joining the WTO and promoting the intellectual property rights. The abundant of foreign capital promotes the economics and trade in China, and has necessary function to the development of related industries.Then, the affection caused by multinational enterprises on technology spillover is analyzed at first. We discover the influence which is brought by the entering of multinational enterprises is not as same as we thought. Firstly, this paper discusses the effect which multinational enterprises will bring to technology spillover under the recent arrangement. We find that because of the essence of maximizing the interest, multinational enterprises must do their best to protect their advanced technology and prevent spillover through establishing self-governed corporations and institutes. This phenomenon cause that our high-technology corporations always play the roles of manufactories without controlling the central technology. And at the same time, we lose the market and the talents.So,whether does the technology spillover exist during FDI?If it does, how should we maximize the absorption? With these questions, this paper established Co integration Model and Error Correction Model to analyze the relationship of long-run and short-run between FDI,R&D,K,L and Y(production in technology industry).From the result, we conclude that technology spillover really exists during FDI, however FDI is only the necessary condition for technology spillover; R&D plays the most vital role in improving the level of technology in our country; the special background leads to the special coefficient of capital (K) which warn our country against using K inefficiently.It can be concluded in the third part that the necessary and sufficient condition for improving the level of technology in our country is taking advantage of R&D in our country and deal reasonably with relationship between imitation and innovation of technique on the basis of using the foreign capital rationally.The forth part reveals the useful conditions for China to take advantage of the technology spillover in the macroscopic and microcosmic aspects respectively, as well as the disadvantageous according to the capability of absorbing . The useful conditions include the steady politics, constantly perfecting the law and strengthening the ability of R&D and so on. And the disadvantageous include the large gap between the technology in domestic and abroad, the deficiency of the scales of corporations and competitive market and the inefficient talent-management mechanism.At the end, this paper suggests some strategies and solutions according to the abroad and domestic circumstances separately. As far as the abroad circumstance, it enhances the management for the foreign capital and the importance of the suitable technology brought from abroad. When the domestic circumstance comes into consideration, promoting the level of technology, encouraging competition and establish the effective talent-management mechanism are considered as the vital factors in the process.