Research on interaction between multinational R&D subsidiaries and domestic innovation agents

The increasing of the R&D investment from multinational corporations has changed the element structures of the regional technical innovation systems and formed the complexity on the interaction among the system. The multinational R&D subsidiaries will compete fiercely with the regional innovation agents for accessing to the limited regional scientific research and market resources. The crowding-out effect on one agent depends on each competence. The focus of this paper is on the relationship between multinational R&D subsidiaries and domestic innovation agents. A new regional technology innovation system framework is developed to facilitate local R&D activity along with multinational participation. And the competitive situation between two agents is analyzed and simulated. Some advice is suggested as follow: First, strengthening competitiveness of local innovation agent is key factor to avoiding or lessening crowing-out effect of multinational corporations. Second, it is very necessary for government to draw up reasonable policies to propel domestic innovation agent forward, especially when it is weak.