Multinational Companies In China R & D Investment And Implications For China Study

With the globalization of the economy, progress in information technology, and the rapid development of new high-tech industries, R&D internationalization has become an important way for Multinational Corporations (MNCs) to gain enormous profits and improve their competitive power. Ever since the mid-1990's, MNCs have made full use of comparative advantages within China in both market space and technology talent and have gradually involved the nation in their global R&D networks in order to gain competitive technological advantages in China. The trend of MNCs to invest in R&D in China has affected China's national technology innovation deeply. With China's entry into the WTO and improvements in the investment environment, there will be more and more MNCs that will establish R&D institutes to serve the global market in China. MNCs' R&D investment in China offers a good opportunity for China to make great leaps in its technological development. However, R&D investment also brings profound challenges to Chinese enterprises which are poor at technology innovation. This thesis examines foreign theories on MNCs' R&D investment, technology innovation, human resources management, network organization, organizational study, game theory, and industrial chain theory. To do this thesis, I have carried out research into MNCs' R&D investment in China, placing emphasis on analyzing management characteristics of MNCs' R&D institutes in China from the perspectives of localization and globalization. Further, I have developed practical suggestions for the Chinese government and enterprises on how to meet the opportunities and challenges which were brought about by MNCs' R&D investment in China. This thesis consists of six chapters and the main ideas of these chapters are as follows:In Chapter One, there is an introduction to the background and meaning of this research, both foreign and domestic research achievements, my research goal, and an outline.In Chapter Two, I combine analysis of outside and internal reasons for and characteristics of MNCs' R&D globalization.In Chapter Three, I combine domestic relative theories to analysis of outside and internal reasons and characteristics of MNCs' R&D investment in China. Moreover, I explain the features and reasons for R&D in specific industries and areas and analyze the positive and negative impacts of MNCs' R&D investment on China's technology development.In Chapter Four, I discuss the management characteristics of MNCs' R&D institutes in China from the perspectives of localization and globalization. In addition, I provide a relative case-analysis of Motorola's R&D investment in China.In Chapter Five, I make some practical suggestions for the Chinese government and high-tech enterprises on how to deal with the issues that arise from MNCs R&D investment in China. For the government, it should try to attract more MNC's R&D investment and upgrade domestic enterprises' R&D activities. For enterprises, they should learn from MNCs' practical experiences and enhance their own R&D level through competition.In Chapter Six, there is a summary of the innovations and some drawbacks...