Game Analysis On Technology Transfer Of Transnational Corporations Under The Subsidy Of Host Country Government

With the acceleration of economic globalization,the development of technology,especially high-tech,has become an important means for a company or even a country to achieve sustainable development.Chinese enterprises have developed rapidly after many years,which have evolved from a backward technology to a core technology that has narrowed the distance with foreign countries in some areas.However,many core technologies are still in the hands of large transnational corporations,and China still needs to introduce advanced foreign technology.China attaches great importance to the technology transfer of multinational company in the domestic market.Multinational companies have built solid barriers in core technology areas due to their strong capital and long-term accumulation.In view of the increasing purchasing power of Chinese consumers and the stable domestic investment environment,multinational companies pay more and more attention to the Chinese market and begin to invest in China and transfer technology in different ways.Based on this background,this paper,with the method of game theory,first constructs the investment income model of multinational companies entering the domestic market through joint venture or direct access under different policy backgrounds,and then researches the enterprise's income,technology transfer and product market pricing and other issues.Secondly,in the case of joint venture or direct entry into the market,the impacts of the two modes on corporate earnings,technology transfer and consumer welfare are compared.Finally,the hypothesis results of the model are verified by numerical simulation.The research results are as follows:(1)For multinational companies,when they have high level technology,they will choose to invest in the host country market directly and transfer more technologies.When their technology level is low,they will choose to invest in joint ventures with domestic enterprises.Compared with the joint venture mode,when transnational corporations choose to invest directly in the host country market,they increase market competition,lower product pricing and improve consumer welfare.In the direct entry mode,if the learning and imitation of the host country enterprises are strong,the transnational corporations will choose to transfer the lower level of technology quality,otherwise it will increase the amount of technology transfer;In the mode of joint venture entry,the size of share ownership determines the amount of technology transfer of multinational companies,that is,the larger share ownership,the greater technology transfer.(2)For the government,high-level multinational companies should be encouraged to invest in China.After giving consumer price subsidies,it can be clearly found that transnational corporations are more willing to transfer high-level technology,and domestic enterprises are more likely to welcome foreign investment for technology transfer.It promotes the development and growth of the industry,actually strengthens the survival and competitiveness of domestic enterprises to a certain extent,reduces the market pricing of products,and improves the level of consumer welfare.