Study On The Effect Of China's Fund Attracting Environment On MNC's R&D Investment In China

R&D is one of MNCs core functions, also is the main origin of competitive superiority of the MNC. With the globalization of the economy, progress in information technology, and the rapid development of new high-tech industries. In order to adapt the more intense globalization competition,The MNC hasn't concentrated its R&D activity in the motherland or the minority specialized market procedure, and started to enlarge its R&D investment dynamics overseas. International strategy of R&D has become the MNCs means of getting high profits and improve its competitiveness.At the same time, as China's comprehensive national strength and the level of opening up constantly raise, China's market status in the global economy gradually improved since the 1990s, multinational corporations have increased trade and production investments with China, they have come to China to set up R&D institutions, particularly in recent years, multinational companies set up R&D centers rapidly,MNC invest in China mainly concentratly in the electronics, information, software, chemistry, and the other fields.Facing this new phenomenon, the theorists just started to the research of the MNC R&D internationalization since 1990s. At present, the research in R&D internationalization agent,MNC'S technology transfer, knowledge proliferation aspect is Extremely are too many. But for the research of taking in foreign investments from the perspective of the host country are very few. Different from the direct investment, R&D investment ,which main purpose are technology and innovation,MNS are more considerate in the host country's scientific research environment, attract investment policies, and other related policies. Generally speaking, when the host government carry out attracting multinationals active R&D investment related policies, multinational companies in the host country will be willing to engage in R&D activities, invest more R&D investment. When the MNC invest in the host country for R&D investment, on the one hand it can improve their ability in technological innovation, on the other hand it will play a positive role in the host country's economic development and scientific and technological level of high-quality professional training. Thus, the host country's environment for attracting foreign investments of MNCs R&D investment has an important role.Therefore, this article discuss how create the better environment to atract the more MNC R&D investment from the host country angle. This article mainly carry on the discussion in two angles:our environment of attracting foreign capital and MNC R&D investment. Through the exhaustive analysis into implication, the characteristic, the reason, the trend of development, the existence question as well as its rationale foundation in two angles. and classified all factors of the MNC into China R&D investment. through the analysis to disvover the main factor of influent the MNC set up the R&D center in China,it has certain theory value and the significance. with launching the real diagnosis analysis to the influence factor of affecting the MNC R&D investment, to analyzes the determining factor of our country to attract the MNC R&D investment. Simultaneously unifies motive of the MNC R&D investment, discovers some regular thing, In the finality,some suggestions that based on the results mentionged above are put forward for china government and enterprise that engaged in attracting foreign R&D investment.