The Role Of Foreign Direct Investment In Supporting The Transition To A Knowledge Economy: Case Of China.

Abstract

The trend in world economy is towards knowledge-based economy. Knowledge is becoming more and more a major factor in the economy of the 21st century. technology is the type of knowledge most related to economic and social development. Technology market has been undergoing several changes during the last two decades; Technology is perceived as an intangible asset and is traded internationally either in embodied or disembodied from technology generation is concentrated in few developed countries and is protected more and more by intellectual property rights. Developing countries wanted to close the technology gap by attracting FDI because they saw it as a magical solution to transfer technology. But experience s showed that they were wrong and that needs a national system of invention and innovation based on training and teaching technological task force and research and development.