Tncs' Technology Linkages with Domestic Firms: An Investigation of the Ict Industry in Suzhou, China

Haifeng Liao () and Yehua H Dennis Wei
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Yehua H Dennis Wei: Department of Geography and Institute of Public and International Affairs, University of Utah, Salt Lake City, UT 84112-9155, USA

Environment and Planning C, 2013, vol. 31, issue 3, 460-474

Abstract: On the basis of a comprehensive survey in the information and communication technology industry in China's Suzhou municipality, we examine the determinants of the technology linkages that transnational corporations (TNCs) make with domestic firms. We found that TNCs' domestic supply and client linkages and their decentralization of decision making had a significant and positive effect on technological interactions between domestic firms and TNCs. However, such linkages were constrained by the technology gap between TNCs and domestic firms and they are focused on new product developments for the domestic Chinese market. The results highlight the challenges that domestic Chinese firms face in establishing ‘global pipelines’ of knowledge exchange. The implications of the findings on technology and foreign direct investment policies in China are also assessed, and we argue that China has potential to pave a new way of technology development by taking advantage of its indigenous capacity and sizable domestic market.

Keywords: transnational corporation (TNC); technology linkage; information and communication technology (ICT) industry; technology and FDI policies; Suzhou; China (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:envirc:v:31:y:2013:i:3:p:460-474

DOI: 10.1068/c11223b

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