After China joined WTO, investment patterns of multinational companies to China are being changed to a center of 'R&D and designs' from 'a base of global factory and manufacturing' by degrees. In the past, Chinese government acquired technologies from...
After China joined WTO, investment patterns of multinational companies to China are being changed to a center of 'R&D and designs' from 'a base of global factory and manufacturing' by degrees. In the past, Chinese government acquired technologies from foreign countries based on a policy known as "exchanging technologies with markets" and attracted multinational companies through various types of favorable treatments, such as the exemption from taxes. However, due to the imperfection of a system of Chinese market economics and the confusion of policy as well as the internal factors of China-based companies, the transfer of technology was not attained as it was expected.
Through recent developments of technology and M&A with foreign high-tech companies driven by Chinese government, a technology competitiveness is being raised, and it has a tendency of changing to a voluntary transfer of technology through an improvement of a system of academic-industrial cooperation to develop China-based companies' R&D. Moreover, it is being changed to a positive and voluntary transfer of technology aiming for the home market, coming out of a passive transfer of technology, based on a continuing advancement of economy and an increase in level of household income. China-based companies start building up the globalized R&D Road Map through a technical cooperation with multinational companies, and a pace of commercializing R&D technology becomes faster. Korean companies are somehow processing a vertical model of technology transfer strategically which leads an involvement of industrial fields to the inducement or the enforcement, while a horizontal model of technology transfer, in which a technology developed within the nation transfers to different industrial fields, is not going well. A demand-oriented cooperation network should be established based on the strategy and the program that could be complementary to limited resources and technology possessed by Korea and that could lead to a joint-ownership of resources and technologies possessed by China. This suggests that the technical cooperation and the strategic transfer of technology between Korea and China and restructuring the advancement of industrial technology should be apace in motion.