A Study On The Effects Of R&D Globalization On The Capability Of Technology Innovation Of China

With the development of R&D globalization, more and more Multi-national Corporations transfer R&D resources to such developing countries that own large number of cheap R&D resources. R&D globalization can provide the possibility to prompt the technology innovation for these countries. For China, one of the world's largest countries to attract foreign investment, whether R&D globalization produces obviously positive effects and how to make use of it to promote technology innovation attract great attention.Five parts are present to solve the above questions. The first part of the paper puts forward the context and purpose of the research, as well as the basic structure of the paper. Then the second part reviews related literature on R&D globalization and technology innovation and lays emphasis on its function mechanism and limiting factors. And the third part analyzes the situation that foreign R&D investments are now in China and the present level of Chinese technology innovation capability. In the fourth part of the paper, it makes the empirical studies on the effects of R&D globalization on technology innovation of Chinese Domestic-funded Enterprises and the whole China. Finally, it gives respective suggestions to Chinese government and enterprises on how to make full use of R&D globalization to improve technology innovation.The results of the paper show that, foreign R&D investments do not have significant effects on Chinese enterprises, and R&D inputs of domestic-funded enterprises are the main factors to improve their capabilities of technology innovation. Additionally foreign R&D investments have different effects to different levels of technology innovation and it has a positive effect on the highest level of innovation, although it is negative to the whole country's technology innovation.