Research On The Influence Of Multinational Corporations' R&D Investment On Chinese Enterprises' Technological Innovation

With the development of economic globalization,the scale of transnational direct investment with multinational corporations has expanded year by year.Multinational corporations' R&D investment activities in China are becoming increasingly fierce.According to the statistics of the department of commerce of our country,By the end of December 2014,multinational companies have established more than 2100 research institutions in China.Consequently,The number of researchers is more than160 thousand and R&D investment in China has expanded its scale year by year.As the scale of R&D investment in China is expanding year by year,its impact on Chinese enterprises' technological innovation has become increasingly obvious.The economic development of our country has entered a new normal state.Strengthening the technological innovation to drive the sustainable development of the economy has become the most important part of our country's current development.Under the above background,I choose the influence of R&D investment in the technological innovation of Chinese enterprises as the subject of my study.On the one hand,this study explored the impact and its extent.And on the other hand,this paper also explored what factors input in the technological innovation process of Chinese local enterprises can enhance the positive impact of R&D investment in China on technological innovation of Chinese enterprises.Finally,according to the conclusion of the research,I put forward the policy suggestions to improve the technological innovation level of China's enterprises realizing the sustainable development of our country's economy.Compared with the existing research,this paper made a clear distinction between FDI and transnational R&D investment as well as technological progress and technological innovation.FDI brought more of the accumulation and efficiency of the existing technology but the R&D leaded a technology update.Therefore,the research of this article is more consistent with the current trend of R&D internationalization and the strategy of China's economic development driven by innovation.This paper mainly adopt the method of combining theoretical research with empirical research.In theoretical research,I studied the influence mechanism and possible impact of R&D investment on Chinese enterprises' technological innovationbased on the characteristics of R&D investment and technological innovation theory of MNCs in China.According to the theory of relevant research,I believed that R&D investment in China has an impact on technological innovation of Chinese enterprises through two directions: Technology Spillover and Technology Extrusion.The technology spillovers of multinational companies' R&D investment in China mainly include demonstration effect,joint innovation effect and human resource effect.The effect of technology extrusion is mainly through competition effect and reverse technology overflow to restrain the technological innovation of our enterprises.The technology spillover and technological extrude of multinational corporations' R&D investment in China are only the initial stage of the technological innovation in China's enterprises.The final result and degree of the technological innovation level of the enterprises of our country is not only affected by the R&D investment of MNCs but also related to the digestion and absorption capacity of our enterprises.When Chinese enterprises have strong digestion and absorptive capacity,Chinese enterprises can effectively learn and imitate the technological innovation mode and experience of multinational companies so as to improve their technological innovation level.When the digestion and absorptive capacity of domestic enterprises is weak,it is not obvious for Chinese enterprises to draw lessons from foreign technological innovation and technological gap between home and abroad may even arise.On the basis of theoretical research,this paper selected the panel data of our country's 28 provinces and autonomous regions in 7 years from 2009 to 2015 to carry out an empirical test.The main conclusions of the empirical study are as follows:Firstly,after domestic enterprises have the ability to absorb advanced technique,multinational companies' R&D investment in China can significantly promote our country's technological innovation;Secondly,the role of R&D investment in multinational corporations in promoting technological innovation of Chinese enterprises is weaker than that of domestic enterprise R&D investment;Thirdly,domestic enterprises R&D investment can promote technological innovation of Chinese enterprises.At the end of the article,I put forward the policy measures to improve the technological innovation level of China's enterprises according to the main conclusions of the study.Firstly,introduce R&D investment of multinational corporations that match our digestion and absorptive capacity.Secondly,Optimize the mode of R&D investment from multinational companies to China.Thirdly,strengthen the R&D investment of domestic enterprises.Finally,strengthening the links betweenChinese enterprises and institutions such as scientific research institutes.Only by taking these pertinent measures can we seize the opportunity and avoid the risk under the trend of internationalization of R&D.