Innovation Strategies of Multinational Corporations in China and Their Contribution to the National Ecosystem

For many years, and with great emphasis since 1995, China has followed a technology-and education-led development strategy. Foreign multinational corporations (MNCs) have played an important role in China’s growth, in developing innovations and contributing to the creation of intellectual capital in China. This chapter reviews the role of MNCs in the creation of foreign intellectual capital in China and its transfer to Chinese firms, including incentives and policy implications for indigenous innovation. It also discusses the evolution of MNCs’ research and development (R&D) strategies in China, China’s policies toward attracting foreign intellectual capital, and the changing policy environment.