In the era of knowledge economy, innovation is the main source of enterprises to obtain the competitive advantage, while multinational corporations are the main body of the global innovation, so attracting multinational corporations' investment plays an important role in promoting technology progress of enterprises in Zhejiang province. On the basis of releasing questionnaires to the global 500 corporations in Zhejiang province, the paper investigated multinational corporations' innovation status. The results show that innovation activity and innovation strength of multinational corporations are low, cooperative innovation between multinational corporations and local enterprises is less, this situation seriously hinders the technology spillover from multinational corporations. Through analyzing the reason of this status, the paper puts forward measures in order to improve the innovation ability of enterprises in Zhejiang province.
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