The Internationalization Of R&D By MNCs And The Countermeasures Of Chinese Enterprises

In the aftermath of the internalization of market, production and capital, the internalization of R&D has become an irreversible trend of global economy. With the continuing expansion of international R&D and the ever increasing quantity of R&D institutions and employees, the gravity of international R&D has been shifting from the developed countries to the developing countries. The MNCs, with a view to optimizing the benefits of their international R&D, seek to redistribute its R&D resources under a global context by taking full advantage of basic resource elements in different countries, lowering R&D cost, enhancing R&D efficiency, attracting high-profile personnel and obtaining sophisticated technology. Owing to different motivating factors, the international R&D institutions basically fall into 3 categories: market-driven type, resource-driven type and market-oriented type. The internationalized process of R&D by MNCs is of great significance to various countries in the world. Be it a host country for R&D activities or a "mother" country for the head offices of MNCs, the internationalization of R&D requests necessary cost from the MNCs in spite of the enormous profits obtained thereupon. The internationalization of R&D by MNCs influences the overall national strength of a country by influencing its innovative system. To put it in another way, the net profits a country may gain from the internationalization of R&D by MNCs rely on its national innovative systemChina is one of the fastest growing economies in the world. Hopefully, China will metamorphose from the "world manufacturing center" to the "world R&D center" with the in-depth internationalization of R&D. Currently, many MNCs have set up R&D centers in China, whose focus has been shifted to developing new technology and new products from products adjustments. With the improved strength of Chinese enterprises, their internationalized process starts. The internationalization of R&D assures an important step for Chinese enterprises in their internationalized strategy, and one of the key approaches for them to obtain or upgrade their core competitiveness. Compared with their peers internationally, Chinese enterprises nearly lag behind in virtually every field. Consequently, it is imperative for them to draw some valuable experiences and lessons from leading enterprises in the world and scrupulously select their own international R&D strategy so as to win out from the fierce international competition.