A Research On Technology Transfer In China’s Outward Foreign Direct Investment

With the acceleration of economic globalization, Outward Foreign Direct Investment has become an important way for multinational enterprises to realize international technology transfer. In this process, the Multi-National Corporation is the main body and the technology owners transfer software technologies like patents, trademarks,know-how and hardware technologies like mechanical equipment,technology products to the recipient. In OFDI way, the MNCs not only can avoid the trade barrier to export mature technology products,but also can track and collect the technical information of the host country.What is more,they are able to actively participate in local technology research and development to promote technological progress.Since government implemented the "going out" strategy, more and more Chinese enterprises have chosen to acquire foreign acquisitions, venture jointly, build new factories and other ways to enter in the international market and make a cooperation in research and development.By this way,they can accelerate the completion of the industrial upgrading,increase the original market share and improve their core competitiveness quickly. The enterprise using technology rationally, transferring technology effectively and innovating independently can raise their competitiveness and market position, and these factors will be the source of sustainable development of enterprises. But the technology transfer of Chinese MNCs is still in the exploration stage, their technology level falls behind the international famous companies’level. In the process of transferring technology to overseas, the MNCs lack experience of technology transfer ways, international cooperation in technology research and development and maintaining technical advantages.At present, the United States and Japan are the technology developed countries in the world, which have a lot of experience in technology innovation and overseas investment. We should learn from them. Therefore, this article analyses of the characteristics and benefits of China’s international technology transfer from the perspective of OFDI, and sum up the international technology transfer strategies of the United Statesand Japan,hoping to find a solution to Chinese enterprises’problem.This dissertation use data, representative cases and related scientific and technical indicators to analyze China, the U.S. and Japan transnational technology transfer. The full text is divided into five parts. The first part is the introduction, which introduces the research background and significance, summarizes the related literature and points out the research contents and methods and the innovation and deficiency. The second part is the theoretical analysis. This chapter mainly expounds the theory of investment and technology transfer in developing countries, which provides theoretical support for this article. The third part is the general situation and problems of China’s technology transfer from the perspective of OFDI. This part uses OFDI data, manufacturing industry data and typical multinational companies like Lenovo Company and Huawei Company to make analysis of China’s OFDI present condition, the characteristics of cross-border technology transfer, the positive effects of OFDI,the problem of China’s international technology transfer and the gap between developed countries and our country. The fourth part is the international technology transfer experience of the United States and Japan. This chapter sums up the two countries’ technology transfer strategies like technology control, technology transfer pricing, and technology research and development etc.Based on the analysis, we summarize the method of overseas investment to maintain technological superiority and improve the technical level. The fifth part is the policy and recommendations to promote China’s OFDI and international technology transfer the on the basis of Chinese government and enterprises and the experience of the United States and Japan.The basic idea is that Chinese MNCs will choose different ways to transfer technology to match the technology characteristics, extend technology products’life cycle and achieve technological synergies; Chinese enterprises are more inclined to export hardware technology though foreign sole proprietorship institution; Comparing with the way of international technology trade, the technology transfer through OFDI has the effect of upgrading industrial structure, integrating the host country resources and reducing the cost of deal; In international technological cooperation, the Chinese enterprises is still in the passive situation. Based on the MNCs’ experience of the U.S. and Japan, the Chinese enterprises should choose a suitable way to participate in the international technical cooperation and pay more attention to the research and development cooperation with overseas universities. The innovation of the article:the past research focused on the Chinese MNCs seeking technology by OFDI and proposed the policy or recommendations focusing on how to achieve technological spillovers. This paper comprehensively analyzes the technology as well as technology products exporting thought OFDI, training and maintaining Chinese MNCs’ technology advantages. Meanwhile, we should learn from other developed countries for cross-border technology transfer pricing and security measures. The shortcomings of the paper is that we use some cases to analyze technology transfer, lack of specific data analysis; In the analysis of the U.S. and Japanese transnational technology transfer strategy, this paper takes the national macro data and survey results in 2010 to replace the business data. This method will lead to the timeliness of the article.