Recently, research and development center of transnational corporation in China developed fast, such corporations as Microsoft, IBM, Motorola, Siemens, Nortel, DuPont, GM, Volkswagen, P&G, Honda and Hitachi set up R&D center in China in accordance with their global business strategy. According to incomplete statistics, there are over 750 foreign invested R&D centers in China, mainly in Shanghai, Shenzhen and Beijing, and mainly involved such technology-intensive industries as electronic and communication equipment manufacturing, transport equipment manufacturing, pharmaceutical manufacturing, and chemical raw material and products manufacturing.

●Importance of R&D center of transnational corporation in China raises.

The R&D centers of transnational corporation can be divided into three categories by their functions and technology:

1, it is based on foundation development, and technology achievements are to the global market; it belongs to global R&D center.

2, it is engaged in application development of products in Chinese market, and belongs to regional R&D center.

3, it is the center of technology support, engaged in testing service, and product repair services.

At present, most of R&D center of transnational corporation in China are mainly for application development, but some centers also make fundamental development. More and more transnational corporations set up their global R&D centers in China.

●R&D center of transnational corporation in China expands in size.

As R&D center in China becomes more and more important, transnational corporation increases investment constantly, and some R&D centers with independence and certain scale develop in China. R&D centers of such transnational corporations as GM and Philips in Shanghai, Motorola and Siemens in Beijing are with investment over US$10 million.

●R&D talents of transnational corporation in China tend to localization.

Transnational corporation attach great importance to promoting localization of R&D talents, most of the researchers in R&D center in China are graduates in domestic universities and returned students. R&D center plays important role in attracting talents, promoting growth of talents engaged in science and technology, and improving research and development.

●Transnational corporation strengthens cooperation with domestic university and research institute, and gets technological achievements.

Transnational corporation carries out close exchange and cooperation with Chinese universities through R&D center, which was one of important features of R&D center in China. GM, Alcatel of Shanghai Bell and Motorola carry out close cooperation with universities and scientific research institutes.

The two parties share IPR ownership of research achievements of the cooperation, which is helpful for improving science and technology of China, enhancing absorption and creation, expanding independent IPR, and industrialization of the research and development achievements