Abstract

With the strengthen of the world's economic and social linkage, the traditional closed innovation system isoutdated, and we must accelerate global innovation network construction and build an open national innovationsystem in order to enhance the national innovation capability more effectively. This paper establishes itsresearch concepts and theoretical framework firstly, and analyzes the nine function route of transnationaltechnology transfer & diffusion on national innovation capability theoretically, which forming a "234" structure,then use the sample data 1993–2011 of China, it empirically tests the Johansen co-integration and Granger-causality relationship between transnational technology transfer &diffusion and national innovation capability.According to the analysis and empirical study, we draw the following conclusions: (1) There exist long-termequilibrium relationships and different Granger-causality relationships between transnational technology transfer&diffusion and national innovation capability. (2) Whether in short-term or long-term, the promotion ofinternational trade or national innovation capability can promote the other side, that’s mean the promotionfunction between each other is both current effects and long-term effects, so it is a win-win relationship betweeninternational trade and national innovation capability. (3) In the short term (2 years), foreign direct investmentand national innovation capability can promote each other. But in the long term (3 years and above), nationalinnovation capability can promote the growth of foreign direct investment, while the growth of foreign directinvestment can not enhance the national innovation capability effectively. (4) In a very short period (1 year andless), it can enhance national innovation capability shortly to increase the transnational R&D institutions toembed into the host country. But in a longer term (2 years and above), there does not exist promote functioneach other between transnational R&D institutions embedding and national innovation capability, and themultinational R&D institutions embedding only has a very limited short-term effect on the host country'snational innovation capability building, and there is no very obvious long-term positive effects.

 

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