Analysis of Foreign R&D Investment in Zhejiang and Its Impact

Nowadays, more and more MNCs put their R&D departments in developing countries. This paper analyzes the situation and characteristics of foreign R&D investment in Chinese Zhejiang province, and then it selects Zhejiang industrial enterprises as target to make empirical test about the impact of foreign R&D investment. The testing result shows that multinational corporations' R&D investment has significant positive impact on the growth of Zhejiang economy. Based on empirical research, this paper finally delivers strategies and policy advices for how to help develop and make full use of the foreign R&D investment in Zhejiang.