Mncs Influencing Factors In R & D Investment

This paper tried to explore the inherent principle for the factorswhich affect MNC R&D investment in China and constructed the modelsuitable for analyzing the above factors. Being different from previousstudy this paper didn't intend to analyze it indistinctly but tried to judgethe characters of MNC R&D investment in China according to someconnected classical theories. After conclusion of R&D globalizationunderstanding of classical foreign investment theory, MNC R&Dinvestment theory and models of influential factors when MNC R&Doversea invests, the author drew out the model of influential factors whenMNC R&D invests in China. The factors are categorized by market factor,resource factor, efficiency factor and exterior circumstances factor.Meanwhile, there are sub-factors under these four categories. Marketfactor accounts for market size, market potential and internationalizationdegree, resource factor accounts for human resource, FDI size, scientificresearch degree, efficiency factor accounts for cost of research personnel,infrastructure, exterior circumstances factor accounts for innovationcircumstance and favorable policies. The following was the introductionof each factor which is ready for the next step. The most important is howthose factors had an influence on the MNC R&D investment to China.After we had a comprehension about the model, we would enter into theempirical study. in this sector, owing to the large amount of factors, it isimpossible to cover all the factors in model. We choose some importantfactors including market size, internationalization degree, human resource,FDI size, scientific research degree, and cost of research personnel,infrastructure and favorable policies in order to ensure the nicety of theconclusions. We made great efforts on the disposal of the data andadoption of the computation measure. The results for MNC R&Dinvestment in China regarded the sizable market, internationalizationdegree, human resource, scientific research degree, and cost of researchpersonnel, infrastructure and favorable policies as the important factors.At last, we gave some policies, I hoped those policies could be helpful forupgrade our competence abilities on attracting MNC R&D investment in China.