Subcontracting and Supplier Innovativeness in a Developing Economy: Evidence from China's Information and Communication Technology Industry

Yifei Sun, Yu Zhou, George C. S. Lin and Yehua Wei

Regional Studies, 2013, vol. 47, issue 10, 1766-1784

Abstract: Sun Y., Zhou Y., Lin G. C. S. and Wei Y. H. D. Subcontracting and supplier innovativeness in a developing economy: evidence from China's information and communication technology industry, Regional Studies . This study critically evaluates the relevance of the global value chains theory against the actual practices of subcontracting and technological innovation in China based on a large-scale empirical firm survey in the information and communication technology industry. The results suggest that the impact of subcontracting depends on local suppliers' absorptive capabilities; that the impact of global value chains on local technology upgrading is not linear; and an overdependence on subcontracting for the global market could hurt technological innovation.

Date: 2013
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DOI: 10.1080/00343404.2011.632227

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