Impact Analysis Of Multinational Corporation’s R&D On Domestic Enterprises’ Innovation Performance In Zhejiang

With the development of knowledge and R&D globalization, MNC is gradually turning R&Din the home country to around the world. Since the 90’s of last century, MNC began to establish alarge number of R&D institutions in China, which has become an important part of MNC globalR&D basement. The large investment of MNC in China is promoting Chinese economicdevelopment rapidly, and then what kind of effect does MNC R&D on domestic enterpriseinnovation performance, what are the effect paths, and whether different paths have different effects?In the process, what kind of role does domestic enterprise’absorption ability will play? All thesequestions will be this paper research.This paper takes Zhejiang Province as the analysis object. First, through questionnaire survey,we found the innovation status quo of world’s top 500 MNC in Zhejiang, to provide realistic basisfor the following empirical analysis. Then, using the 2000 to 2008 year data sequence in Zhejiangas samples, we analysis the impact of MNC R&D on domestic enterprise innovation performanceusing path model; also examines the regulating effect of the native absorptive capacity.The empirical result is basically consistent with questionnaire survey, that is technologyspillover of MNC in Zhejiang is insufficient. Specifically, the paper draws the followingconclusions: First, R&D of MNC has no significant impact on invention patent application of nativeenterprise; Second, R&D fund of MNC has notable effect to patent application number and theappearance & utility patent application of domestic enterprise. In the direct path, R&D fund ofMNC has crowding out effect to domestic enterprises’innovation performance. In indirect path,R&D fund of MNC has spillover effect on domestic enterprises’innovation performance. Overall,R&D of MNC in Zhejiang produces negative influence to domestic enterprises’innovationperformance. Third, domestic enterprise absorptive capacity has positive moderating effect onimpact which MNC R&D to domestic enterprise innovation performance. Through the analysis ofsurvey data, the paper analysis the reasons why the technology spillover of MNC in Zhejiang isdeficiency.Finally, according to the conclusions of the research, combining the actual situation ofZhejiang Province, the paper has proposed five recommendations, in order to reduce the negativeeffect and enhance the positive effect which R&D of MNC on domestic enterprise’innovationperformance.