Developing Host Country's Technological Progress and Environmental Constraints under Presence of Multinational Enterprises

How did the multinational enterprises (MNEs) effect host country's enterprises in technological progress? There are two ways. First, MNEs will carry out technical control to maintain its technological advantage in the host country, and set very high barriers to the entry of the host countries' high-tech industries and there is the possibility of "Creative Destruction" to the technical innovation of the host countries' enterprises. Second, although the multinationals have severe restrictions on technology, but it still will produce technological spillovers for local businesses, as technology is non-rival and partially excludable. I concluded that the high level of human capital, financial deepening and competitive market environment is better to absorb the technology spillover from the multinationals.