Multinational Companies In China R & D Strategy Study

This paper introduces the scale and form of R&D centers of western multinationalcorporations (hereinafter refer to "MNCs" for short) in China, analyzes the reasons whyMNCs establish R&D centers in China and the status of these R&D centers in the MNCs'global R&D systems, based on which, the paper discusses the gap between Chinese R&Dinstitutions and MNCs' R&D centers.This paper also analyzes the impact of MNCs' R&D centers in China, including theindustry structure, the human resource, R&D capacity and R&D environment.In addition, this paper discusses how India has developed its software industry byutilizing MNCs' R&D centers in India. This experience is useful for the Chinese enterprises toimprove their R&D.To be confronted with the chances and challenges of MNCs' R&D centers in China, thispaper puts forward some specific measures to encourage MNCs' R&D investment, to avoidthe disadvantage of MNCs' R&D centers in China, and to improve our R&D capacity. Thesemeasures include improving talent management mechanism, enhancing the protection ofintellectual property rights, upgrading the R&D institutions of the local companies,strengthening the collaboration between local companies and MNCs, enriching the R&Dcontents, and perfecting the R&D environment.