R & D Investment Of Multinational Companies In China And Local Chinese Companies Technology Innovation

Since 1990s', the accelerating Economy and Technology Globalization has promoted the TNCs to set off a wave of R&D Resources Transfer and Relocation for maintaining and magnifying their competitive advantages. Entering 21st Century, the wave of global R&D Resources affected China violently and brings this nation challenge as well as opportunity in its coming economy opening. Meanwhile, theory circle faced two pressing proposition. First, how to evaluate the real purpose of TNCs' transferring R&D resource; Secondly, how to make use of R&D investment that jammed into Eastern Coast Region of China, and how to enlarge the absorption of R&D Spillover with reducing the extrusion effect.In this paper, I start my research based exactly on two angles mentioned above.The paper is divided into five parts:The first part is introduction, which is used to state the meaning of research, and summarize the methodologies and basic views in different theories and disciplines. This part prepares for the following theoretical work and empirical analysis.The second part (Chapter 2) summarizes characteristics and trends in development of TNCs' global R&D resources recombination, analyzes the course of TNC R&D resource transfers to China, the distribution of location and its reason, then depicts a distinct reality background of the following study.The third part (Chapter 3) is to analyze TNCs' R&D investing motivation, process and impacts on economics and society of China.The fourth part (Chapter 4)is based on how to the enhancing innovation capability of China's local enterprises. First, I analyze the mechanism that TNCs' R&D resource impacts innovation capability of China's local enterprises. I choose the hi-tech industry as study object. I found that in foreign investments significantly promote the innovation capability of domestically funded enterprises.The fifth part (Chapter 5)is based on the researching result of the fourth part, TNCs' R&D investment has an impact on many facts of our country, and positive impacts accompany with negative impacts. Then I give relative advise and suggestions on policies of TNCs and domestically funded enterprises.