Research On The Impact Of Multinational Subsidiary Knowledge Sourcing On Technology Innovation Ability Of China's Automobile Industry

As the actor of FDI,multinational corporation' s spillover effects in the host country mainly achieve through its' subsidiaries' production and R&D activities in the host country. Being an important part of the multinational corporation network,subsidiaries embed in the network of host country and have an influence on host country. When subsidiaries source knowledge from the network of multinational corporation and host country, the action of knowledge sourcing certainly plays an important role in explaining the impact of FDI on the host country's technology innovation capability. There is few theoretical and empirical studies about the influence of subsidiaries knowledge sourcing on the host country's technology innovation capability. Most of the present study is about the study of subsidiaries' knowledge sources and the subsidiaries' role. Along with more and more multinational corporation setting up R & D institutions in China and cooperating with Chinese local car-makers, multinational subsidiaries begin to source more valuable knowledge resources from the network of host country. Will the action of knowledge sourcing from the network of multinational corporation and host country have spillover effects on host country's technology innovation capability? Answering this question will help us put forward more valuable policy suggestions to improve domestic technology innovation ability.Based on subsidiary knowledge theory, technology innovation theory, spillover theory of FDI, this paper firstly defines and measures the concept of knowledge sourcing and technology innovation capability. Secondly, this paper analyzes the form of knowledge sourcing and puts forward the hypothesis about the relationship between subsidiary knowledge sourcing and technology innovation ability. Thirdly, this paper analyzes the characteristics of China's automobile subsidiary's knowledge sourcing. Fourthly, this paper builds the multiple linear regression equation and makes regression analysis. Finally, this paper puts forward policy suggestions about how to make the best use of the spillover effect of knowledge sourcing to improve domestic technology innovation ability.About research methods, the paper combines the literature research, qualitative analysis and empirical analysis together. On the one hand, this paper puts forward the hypothesis about the relationship between subsidiary knowledge sourcing and the host country's technology innovation ability. On the other hand, this paper chooses China's auto industry as a sample and constructing multiple linear regression equation to carry out empirical analysis between the subsidiaries' knowledge sourcing and the technology innovation capability of China's automobile industry.Based on China's automobile industry, this paper discusses the impact of subsidiaries' knowledge sourcing on the host country's technology innovation ability. The empirical results show that subsidiaries' knowledge sourcing indeed has a spillover effect on the technology innovation capability of China's automobile industry. And the empirical results also show that sourcing knowledge from multinational corporation has more obvious spillover effect on technology innovation capability of China's automobile industry.