Effects of strategic alliance on China´s technological progress

Along with the development of knowledge economy, the level of technology becomes core competitiveness of a country´s economic advances. As the costs of R&D increases, multinational companies have formed strategic alliances to share resources, especially technology. In this paper, with the time series data from 1985 to 2008 of China, we made an empirical test to measure the impacts of strategic alliance on the technological advances in host country. The results show that: China´s domestic independent R&D is the main factor of technological progress. Besides, technology spillover of strategic alliance also significantly promoted the technological progress, while the technology monopoly produces technology extrusion effect which can impede China´s technical progress, and it is not notable. Our findings suggest that China not only rely on its own technological innovation but also make full use of multinational strategic alliance to promote local technological progress through technology introduction and absorption, and eliminate adverse effects at the same time.