An Analysis Of R & D Internationalization Of Multinational Corporations And Its Motives

Multinational corporations began to carry out the Research and Development internationalization during the 1960's. With the improvement of international macro environment and the aggravation of global competition, this phenomenon became more and more common. Especially, since 1960's, with the development of economic globalization and the coming of knowledge economy and the information technology society, multinational corporations have realized the significance of the technology for enterprises to keep the advantage in the international competition. What' more, technological innovation is the core of enterprise competitive advantage. In order to maintain lasting competitive advantage, most large multinational corporations adjust their global operating strategy based on the core of global technology strategy. Among these, strategy of R&D internationalization is one of the most important trends. Since the reform and opening up in China, the internationlization strategy of multinationl R&D has come to China. Chinese enterprises start to establish R&D branches abroad. However, the level of R&D of Chinese enterprises is comparatively low, and the state system has too much confinement for multinational R&D. So this paper tries to analyze the external and internal reason of R&D internationalization of multinational corporations thoroughly by combining the knowledge of philosophy with economics in the perspective of business cases and theories and offer some suggestions that China should be adopted after discussing the current situations of Chinese enterprises in R&D internationalization. This paper is divided into six chapters.The first chapter mainly summarizes contemporary research status of R&D internationalization of MNCs and its motivations in foreign and domestic academia, and then points out the great necessity of researching motivations in the globalization tide of R&D. Conception, main characters and concrete patterns of R&D internationalization are demonstrated for the purpose of having preliminary knowledge of R&D internationalization in the second chapter. In the third chapter, the external motivations of internationalization of MNCs' R&D are analyzed based on three aspects, which include the transformation of international competition patterns, the promotion of economic globalization and the rise of knowledge economy. The fourth chapter expounds the internal motivations of internationalization of MNCs' R&D in combination with the comparative advantage theory and the late-developing advantage theory. The fifth chapter puts forward some suggestions and measures that China should be introduced in the internationalization tide of R&D according to the current situations of Chinese enterprises in R&D. The last chapter is the conclusion and the shortage of the essay.