The Foreign Direct Investment Of Transnational Corporations And The High-tech Development In The Host Country

The Foreign Direct Investments (hereafter called FDI) of Transnational Corporations (hereafter called TNCs) produce positive impacts on the high-tech industry in a host country. This paper attempts to analyze and examine this argument in four chapters.Chapter 1 introduces the definition of high-tech industry and presents its characteristics, which lays a sound foundation for further investigation on the influence that is brought about by TNCs on the development of high-tech industry in the host country. After that the chapter gives a comprehensive account of the relationship between TNCs and high-tech industry, as well as a brief interpretation of basic theories concerning the FDI of TNCs, based on which the research in both chapter 2 and 3 is further conducted, and in the end examples are given to justify the feasibility of utilizing the FDI to promote the growth of high-tech industry in the host country. In the systematic perspective, Chapter 2 and 3, as the main body, highlight the two dynamic mechanisms in terms of market and technological innovation in the high-tech industry; moreover in this theoretical framework and by combining theoretical interpretation and case analyses, the positive influences that come from the FDI of TNCs in the field of the high-tech industry on these two mechanisms are to be thoroughly explored. The final chapter provide an analysis of the influence Of FDI of TNCs to the high-tech industry in China by taking into consideration the present national situation; as a result, some tentative policies and suggestions are recommended in relation to the trend that TNCs make the FDI in China.