Multinational Companies And Industrial Clusters In China, The Interaction Between Research,

With the deepening of economic globalization, Transnational Companies (TNCs) in order to harvest the comparative advantage, so they implemented strategies in the process of development, production, sales and other areas. TNCs investments also attract their own suppliers and local enterprises to the cluster. China has made a very large economy development; large-scale multinational companies had entered the China after 90 years in 20th Century, many industrial clusters based on TNCs investment (external-born industrial clusters) has developed. So it has far-reaching significance to study TNCs participate in the development of external-born industrial clusters in china.This article starts from the interactive relationship between TNCs and external-born industrial clusters. Article discusses the interactive relationship from the theoretical and practical views. First, the article reviews theories about the interactive between TNCs and industrial clusters, then summed up the study articles of Scholars at home and abroad. TNCs have made a large impact to external-born industrial cluster formation, development, technology upgrades. As the same time, the effect of external-born industrial clusters is also effect the competitive advantage to TNCs. The article points out that the participation of TNCs in the external-born industrial cluster formation and development is deepened on the country-specific and regional advantages. Then the article studies the relationship between TNCs and external-born industrial cluster from Empirical analysis of qualitative. The article point out TNCs is the direct power source of formation and development of external-born industrial clusters, TNCs is also a very important media of the external-born industrial cluster interaction with the world's market. TNCs have already been embedded in external-born industrial clusters chain division and to share the proceeds. While TNCs change their invest form one regional to anther can affected the rise and fall of external-born industrial clusters. The external-born industrial clusters also strengthened regional competitive advantage of TNCs has optimize the division of chain within the process. After the qualitative analysis of relations between TNCs and industrial clusters, this article linking theory with practice and use Suzhou electronic information industry cluster as example to discuss the TNCs influence in Suzhou IT industrial cluster, as well as the influence of the IT industry cluster to TNCs investment behavior and competitive and so on. Finally, author discusses the present stage of China's multinational corporations and how to effectively use the interaction of external-born industrial clusters to push forward China external-born industrial clusters particular high-tech industries to a new level of competition.