Reasearch On The Mode Choice Of China's Overseas R&D Investment

Choosing an appropriate overseas R&D investment mode is very important for an enterprise to perform multinational operation. With the rapid development of economic globalization, the research and development investment of multinational companies has been showing an international trend. In the tide of multinational operation R&D globalization, more and more China's enterprises have started the actions of overseas R&D investment. China's overseas R&D investment is in its initial stage, so the enterprises will face with the choice of kinds of issues, and the mode choice of overseas R&D investment is an important aspect. The study on mode choice of overseas R&D investment for China's enterprises has fully important realistic significance. The purpose of this paper is to draw lessons from the mode choice theory of foreign direct investment to research on the mode choice of China's overseas R&D investment, and provide a helpful reference for China's enterprises.This paper studies China's overseas R&D investment of the early stage from the perspective of mode choice. First, this paper summarizes the researches on overseas R&D investment and concludes the overview from both foreign experts and domestic experts. Then, this paper describes the theories of mode choice in Multinational Corporation's foreign direct investment, based on which China's overseas R&D investment mechanism is concluded. Second, through the comparative analysis between China and developed counties, this paper studies the current condition of China's overseas R&D investment and the features of its mode choice as well as the weakness in the mode choice. Third, this paper takes Haier, Huawei, Lenovo and TCL as typical cases to analyze two modes which are greenfield R&D investment mode and multinational technology M&A mode. The emphasis of the analysis is the key factors which can affect the mode choice of China's multinational corporation's overseas R&D investment. Then this paper gives the conclusion that when China's enterprises choose overseas R&D investment mode, they must think of development strategy of enterprises and the actual situation of host country. China's enterprises should consider the comprehensive factors to choose the best mode.Finally, based on the conclusions, this paper gives two levels recommendations on how to make a batter mode choice.