A Study Of Influence Of Global Corporaton's R&D Activity In China To Chinese Enterprises' Technology Innovation

Currently many Chinese industries are still at a level of importing and leaning new technologies from other counties. The abilities to do R&D and convert its results into products and profits are still at it's infancy in China. Due to a combination of patent limitations and slow investment returns on R&D, many Chinese companies still choose to invest the majorities of their money and time into marketing and distribution channels. The lack of a good legal regulation system of the marketplace can still be notice by the rampant availability of fake and poor quality goods on the market. These and many other issues such as bribing corruption cause current growth limitations, small profit margins and the short life cycle of the many Chinese companies. Lacking of fund, mediocre research results, low commercializing rate, and short sight are the most significant obstacles facing by Chinese companies. These obstacles may severely stem the source of innovation of technology and production.As the most important guarantee for global corporations to win benefit, the R&D department is domestic oriented for a long period. At the beginning of 21st centuries, global corporations changed their R&D center layout tradition that setting up R&D center in mother country. According the comparative advantage of human resource, technology ability and basic facilities in different host country, they established R&D organizations in the world area and engaged in R&D work of new technique and new product, which promote R&D activity of global corporations towards the direction of globalization. Establishing R&D organization in China will become hot problem of global corporations to invest in China gradually.This article analyzes both positive and negative impacts global companies' R&D investment may bring to Chinese enterprises, tries to find a new approach for Chinese enterprises to develop their technology innovation, gives some advises from both government side and industry side, at the same time provides references for government to set policies to facilitate technology innovation and for enterprises to strengthen their R&D capabilities.