Research On The Stages Of Development Of R&D In China For Multinational Corporations

With the accelerated process of economic globalization, characterized by R&D globalization of technology globalization is in full spreading around the world has triggered a wave of innovation in multinational R&D institutions. China, as the world's largest potential market in developing countries, since the mid-90s of the 20th century, have attracted a large number of multinational R&D investment, many multinational corporations began to establish R&D institutions in China. So far, IBM, Microsoft, Unilever, HP, Motorola, Procter & Gamble, Intel,and other world-famous multinational companies are to have set up R&D center in China. These companies set up R&D institutions in China, either in order to "achieve the technological localization" to customers in China to open up China's market and support its own production in China; and either to take China as an important global R&D base, provide technical support and product to customers around the world. With development of the R&D institutions in China, R&D activities are more in-depth, the form of R&D institutions is undergoing a gradual transition to higher forms of transnational corporation increasingly fierce competition between.R&D institutions as the core of multinational corporations, the development of change not only reflects the company's strategic intent, but also in the realization of company's strategic goals, also has a critical role. In this paper, we analyze the investment behavior of multinational R&D institutions in China. First, in the "two stage theory" based on the profits of multinational corporations in China from different sources, to further refine the two-stage theory, the "profit grab" phase is divided into "profit grabbed the initial stage (R&D institutions with the primary stage)" and "profit grabbed an advanced stage (R&D institutions with an advanced stage). Secondly, these two stages as a measure of multinational companies in China, the benchmark level of development of R&D institutions, while the development of R&D institutions include comprehensive consideration of the factors (experience, industry characteristics, environment and strategic requirements, etc.), and finally, from the profit-maximizing perspective, pointing out that multinational companies in China should carry out R&D investments, thereby changing the form of R&D institutions (from the primary stage to the advanced stage of the cross), in order to achieve the purpose of strategic adjustment in line with the interests of multinational corporations in China, does have some practical significance to the development of multinational corporations in China.