Effect Of TNCs R&D Globalization On Chinese Technological Progress

According to the comparative advantage of human resource, TNCs configure and coordinate their R&D activities in different countries, TNCs arrange R&D institutions systematically, and carry out R&D throughout the whole world. which constitute integrated R&D networks. During the process, TNCs tend to place R&D investment in developing countries. The technology spillover of R&D globalization has been becoming an important factor of technology upgrading in developing countries. But every picture has two sides, technology spillover cannot happen spontaneously. If developing countries want to gain more from TNCs global R&D investment, they must hurry up to build their own knowledge property right system, enlarge local companies R&D investment and improve the absorptive capacity of local companies and research institutions, finally, build a suitable national innovation system(NIS) and improve its innovation ability and efficiency based on R&D globalization.China become first choice of future R&D investment for TNCs, because of bright-future market, great economic performance and abundant research staff. This paper gives a further study of R&D investment in China such as survey, characteristics and how it influence China technology upgrading , based on analyzing the theory background and motivation of TNCs R&D globalization and its effect on technology upgrading of developing countries. Then this paper shows the characteristics and trend of TNCs R&D investment in China through game analysis among TNCs and game between TNCs and Chinese government. Chinese government can use favorable policy to attract R&D investment, meanwhile improve Chinese R&D environment.At last, this paper reviews statue quo of China national innovation system, and give suggestions for making use of MNCs R&D effectively.