International industrial transfer derived from economic globalization and international delivery of labor. With the rapid economic development and market competition's heating up, the international industrial transfer trended a new way. Earlier in its formation, the main type was Labor-intensive industry, and the transferors were developed countries and sub-developed countries. Later, the type of international industrial transfer began to diversify:not only the Labor-intensive industry, but also the Capital-intensive industry and the Knowledge-intensive industry begin to transfer; the transferor begins to become more:developed countries, sub-developed countries and the developing countries.This article engaged to study the mechanism of the influence of international industrial transfer to the technology innovation. There are three modes of international industrial transfer:International Trade, Foreign direct investment, and contracts of international production. With the technology transfer as an intermediate variable, Different type of international industrial transfer transport technology in different way. Technology innovation can be divided into external innovation and internal innovation.International trade performs in two ways:general goods trade and international technology trade. General goods trade transfer technology indirectly in low speed, but in this mode the transferor can take charge the process. The most direct way to transfer technology is international technology trade. In this mode, transferor can absorb the most advanced technology independently, but it will cost a lot. Foreign direct investment has two modes:multinational firm and International technology alliance. Multinational firm transport the technology quickly, but the whole process is an internal technology transfer. External firm can get the advanced technology only by technology spillover. In international technology alliance, each company can get other's knowledge by sharing his own technology. With this mode, company only share his mature technology with others, but just because of the technology's developed level, other company can absorb it easily. Both of forward OEM and reverse OEM belong to contracts of international production. Forward OEM is familiar with goods trade in some way, but they have a lot of difference. Forward OEM transfers technology by technology spillover and the transferor can get the advanced technology. Reverse OEM goes in a different way, the foundry get new technology by merger and acquisition. |