Technology Monopoly Strategy Of Transnational Seed Corporations In China

Since the 1980s, the tendency of globalization of transnational corporations has unceasingly strengthened, China has the huge seed markets, rich plant genetic resources, superior inexpensive human resources, which is becoming the key point which transnational seed corporations seize. In the fierce market competition, transnational corporations become winners owning to their strong R&D strength and advanced technology. In order to get and win China's seed market, transnational corporations tend to take R&D localization strategy using local technological resources to develop excellent products that are adapt to the local ecological environment, in addition to direct input technology. The entry of foreign advanced technology and direct R&D investment by transnational corporations have dual influence to China, on the one hand, it brings advanced breeding technology and management experience, which can promote China to use the world's advanced agricultural technological achievements, and shorten the gap with the developed countries. This is a positive meaning, On the other hand, in order to maintain long-term technical and economic advantages, transnational seed companies continue to strengthen its technological monopoly and technology transfer internalization strategy, try to minimize its advanced technology spillover effect in the host country, so as to prevent the host countries'related research and development enhancing. There will be potential risk: the seed industry development is going to depend on foreign technology in a long time. Therefore, it has important strategic significance for the ensuring the sustained and healthy development of seed industry in china to use of transnational corporations R&D spillover effects effectively and constantly improve the level of China's technology research and development to achieve leap development.The paper take R&D investment of main transnational seed corporations in Chinaas research object, the first analysis is the R&D investment's development process and current situation in China,According to characteristics of seed industry, the paper establish technology spillover effects model to evaluate R&D localization of seed industry. Then, using breeding patent data and new variety right data, the paper analyses the technology exclusive and monopoly strategy,and technology transfer internalization and R&D localization through case study.Finally,according to the technology monopoly strategy of transnational corporations, the paper proposes some policy recommendations to strengthen R&D capability of seed industry in China. The main conclusions are below:First,through the analysis of theoretical model, the technology spillover effect of of transnational corporations'R&D investment for china's seed industry technology progress depends on the information overflow degree.When the information overflow degree exceeds 0.5, the multinational seed companies'the strategic complementarity of R&D effects is more obvious, spillover effects is more increasing.Spillover effects can gather domestic R&D resources, and promote to raise China's seed industry R&D level. Conversely, when the information overflow degree is more close to 0, the strategic substitution effect is more obvious, the crowding-out effect is greater.Crowding-out effect make multinational corporations squeeze the domestic Seed market. At the same time,it cannot strengthen China's seed industry R&D capability.The result is that China's seed industry technology development will depend on transnational seed companies, and lose independence.Second,through analysis of breeding patent data and new variety right data,the paper proves that the trend of technology exclusive and monopoly of transnational seed corporations is clear. After 2002, the multinational seed companies apply patent with an average annual growth rate of 7.5% in China, the effective maintenance rate of granted patents is higher than domestic patent nearly 24 percentage points. About the terminal patents, nearly 60% of patents maintain above 10 years'life, while in domestic,only 8%. and Transnational seed corporations control core technology patents of herbicide resistance, insect resistance.Third,Through typical cases analysis,the paper shows that R&D localization of transnational corporations in China turns toward R&D, breeding, production and sales integration direction. For example, the corn varieties Xianyu 335 that research and develop in China of DuPont- Pioneer,which forms a complete technology system from upsream to downsteam. all the technology is internal transfer.it is a closed and independent technology system, almost no local enterprises to participate,but the technology system is not conducive to technology spillover effects and raise local R&D level in China.