Research On The Trend Of MNCs' Adopting Wholly Owned R&D Investment In China

The globalization of economy has urged the world to an international relation in an unprecedented way. Multinational companies (MNCs) are playing an increasingly important role as a link in the world economy. After the globalization of production and trade, the globalization of R&D becomes new issues for MNCs. From the beginning of China's reform and opening to now, MNCs have being going through these activities in China. From the stage of trade and transfer of technology and equipment to the stage of joint venture and cooperation investment, in recent years, MNCs have established a large number of wholly-owned R&D centers, which is becoming a trend. Nowadays, MNCs treat China as an important node to optimize and allocate resources from a global perspective. For the past decades of China's reform and opening, MNCs' investment activities in China, to some extent, have created an era of "Made in China", however, at this stage, the trend of wholly-owned R&D investment in China has shown more negative effects, which has confined the development of China's innovation and R&D activities. If we can regulate and guide this trend effectively, and take advantage of this opportunity, the phenomenon will be conducive to the development of China's innovative capability, the upgrade and optimization of China's industrial structure, and be also conducive to the transformation and promotion of the era, "R&D in China".Against this background, the thesis tries to break up the borders and give an integrative analysis of "Made in China", China's innovation and investment of MNCs based on the perspective of industrial value chain, which are studied as three independent fields for the past research. At the beginning, the thesis describes the research background, the significance and related literature review, then analyses the process of MNCs' wholly-owned R&D activities, and studies the motivation and negative effects of the trend, then through a case, the development of Motorola's R&D investment activities in China, gives a demonstration of what has been studied in the above paragraphs. Finally the thesis draws conclusions and gives the corresponding policy countermeasures on the aspects of our government and enterprises: China has not been "the world manufacturing center," which should possess capabilities of R&D and technical innovation, only an initial stage of "R&D in China", we should seize this opportunity to accelerate and transform the pace from "Made in China" to "R&D in China".