This study explores why international joint ventures (IJVs) based on the global South may meet with only partial success in nurturing local technological capability. The experience of China's passenger-vehicle sector demonstrates that in the existence of a substantial technological capability gap between alliance partners, the IJV arrangement is likely to create a "passive" learning mode, and learners using this IJV arrangement may be able to strengthen their production capability but leaving their project execution and innovation capabilities largely undeveloped. Copyright 2011 The Author 2011. Published by Oxford University Press on behalf of Associazione ICC. All rights reserved., Oxford University Press.
Industrial and Corporate Change is edited by David Teece, Glenn R. Carroll, Nick Von Tunzelmann, Giovanni Dosi and Franco Malerba
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