A Study On The Regional Selection Of Multinational Corporations’R&D Investment In China

With the deepening of economic globalization, multinational R&D organization model has undergone major changes. Breaking the traditional pattern which remained in the national R&D institutions, from its global business strategy, Multinational Corporation constantly establishes research institutions overseas. Since the reform and opening up, China’s economy has maintained a rapid growth. Multinational Corporations also attach great importance to the strategic position of the Chinese market, not only improving the investment in the Chinese market, but also increasing R&D investment in China. But between the different provinces there are big differences, such as the imbalance in the level of economic development, technological level, quality of talent, infrastructure, industrial facilities, etc. When doing multinational R&D investment in our country, Multinational Corporation should consider these factors and thus make the right location choice decisions.Firstly, with the basic theory of Multinational R&D Investment for departure, based on the analysis of multinational R&D investment in our current situation, on our R&D investment for the location choice of multinational corporations, influencing factors are analyzed and refined to factors such as market size, the size of foreign investment, scientific research, scientific research personnel, labor costs,government policies, the degree of protection of intellectual property, information infrastructure. Then take advantage of our24provinces in2007-2012panel data, a model was constructed basing factors in24provinces in multinational R&D investment location choice, and doing multiple linear regression. The results showed that seven factors in location selection, market size, the size of foreign investment, the level of protection of intellectual property as an important factor, scientific research, scientific research and talent for the general factors, and proposed policy recommendations. Hope that the conclusions and recommendations to a certain extent, being able to provide further information to China’s provinces (municipalities and autonomous regions) to fight multinational R&D investment.