The Analysis About Performance Of Spillovers And Innovation Between MNCs And Chinese Enterprises

There are a lot of researches about technology spillovers, technological innovation and Corporate performance between multinationals and Chinese enterprises in China, and they have had a certain impact in this area. Many scholars research this topic, and also formed a number of theories. This is mainly due to the great progress of China’s economy, a large number of FDI have been attracted to China, and promote the development of China’s economy, and the improvement of China’s industrialization level. At the beginning, we have always advocated "using the market for technology ". But with the development of process, this practice will not be durable. Because in the developed countries, multinational corporations are profit-driven, they can not completely tecah the Chinese companies the core technologies which they have, if so, they are always some outdated technology. In1990, many enterprises introduced the same production line at the same time, the benefits of such competition will ultimately fall on the hands of multinational companies which belong to developed countries. Although we have learned a number of technologies in this process, but it is very limited.Now the domestic and international technology spillovers of multinational companies are mostly concentrated in developed countries’multinational subsidiary companies in host countries and the technology spillover effect on the performance of the host country enterprises. The main reason is that people believe that multinational corporations in developed countries generally have a higher level of technology, they do not need learned knowledge from these enterprises of developing countries, and they also usually considered that it is impossible to learn knowledge from them. This view is very common both at home and abroad, this is also in line with common sense. But the fact may be not so easy. Firstly, the developed and developing countries are stay in different levels, different stages of development and different forms of market structure, they can not copy the experience and knowledge of developed countries in developing countries continue to implement. Secondly, there are also different in various countries, including socio-cultural, customs, and consumer habits, etc. Therefore, a method used in all countries and regions is certainly impossible. Finally, TNCs from developed countries may be leading in most areas, but it can not lead in all respects, this is unrealistic. Developing countries’leading technology in the areas will certainly exchange with the developed countries, multinational companies produce technology spillover, it will be positive impact.Recent relevant literature about FDI in developed countries which have confirmed the existence of anti-productivity spillovers from local enterprises to foreign companies. However, the current research didn’t have any anti-spillover effect reports on the theoretical and empirical research in developing countries. Based on this, this paper respect related research, in order to provide some references.This paper studies the details in the following way:Part Ⅰ:Introduction the background of foreign capital in China, multinational corporations briefly. Next, describes the background and significance of reality of the paper. The next section we will present ideas on what we need to study. Finally, the possible innovation of this article.Part2:Literature review. This section we review the related research at home and abroad, and put forward our hypothesis. Currently, the majority of studies focus on spillover effects of multinational direct investment, but still in the early studies, and mainly based on empirical research, haven’t formed a mature theoretical system. Our literature review include two major aspects:First, multinational enterprises spillover in host countries;,The second is the reverse knowledge spillovers of local business to TNCs.Part3:We focus on knowledge flows between multinational corporations and local enterprises. In this part, we will discuss it from two perspectives, the first is the flow of knowledge between TNCs and local enterprises which have impact on local businesses, second is the flow of knowledge between TNCs and local enterprises which have impact on multinational corporations. Through two aspects of the analysis, we can put forward two hypotheses. Hypothesis1:local enterprises’knowledge spillovers has a positive effect for subsidiaries of transnational corporations’innovation capacity. Hypothesis2:local enterprises’ knowledge spillovers has a positive impact on corporate performance.Part4:Case studies of technology spillover and innovation between multinationals and Chinese enterprises.Part5:Empirical analysis of innovation and technology spillover between multinationals and Chinese enterprises.Part6:We will further discuss the Part4and Part5, and analysis the reasons in detail. And we find another factor in the process of enterprise development, which we think is very importan--relational capital. And pointed out that this is important in the process of enterprise development.