Analyzing on China's Mainland Construction's Absorbability of RD Investment from Multinational Corporations through Comparative Advantage Theory

摘要

Multinational corporations (MNCs) are reinforcing their oversea research and development (R&D) investment under the trend of globalization. So as the most important economic activity of transferring the knowledge into productivity, R&D becomes the core of knowledge-driven economy. The traditional comparative advantage theory which adopts the labor productivity (LP) as its essential factor analyzes the international division of labors and industries. But when the knowledge-driven economy actually comes, the traditional comparative advantage theory can't elaborate its efficacy because of its deficiencies. When proving the result of the R&D investment comparative advantage model, some data from certain industries of China's Mainland and India are presented as substantial proof. The paper solves the problem of attracting investment and gives some suggestions especially those related to output rate of knowledge (ORK) to guide the other industries to reinforce their comparative advantages when competing with their counterparts.