technology transfer in fdi sm m
Post on 25-Jan-2015
245 Views
Preview:
DESCRIPTION
TRANSCRIPT
TECHNOLOGY TRANSFER IN FDI
AJIT KUNWAR(201275048)
Executive summary
This presentation focus onCommercial technologyMotives of host and home coun-
triesGeneration, transfer and diffusionConflict resolutionCreating win-win situationBrief discussion on Chinese auto-
mobile industry
TNCs goes abroad for…
Resource seekingMarketEfficiencyGlobal presence and overall increase in
turn-over
Host countries‘ motives…
Technology transfer
Partnership and alliances in R&D
Training and knowledge spillovers
Employment and economic growth
Technology Generation
Capital intensive R&D, time consuming process,
may take decades to be commercially viable
Developing nations lack enough infrastructure to
make R&D economical
Ways of technology transfer
1. Trade in goods and services
2. Foreign direct investment(FDI)
3. Technology purchase and licensing
Technology transfer through FDI
1. Internalized Full ownership New affiliate Acquisition of lo-
cal firms
2. Externalized Technical assistance Manufacturing ar-
rangements subcontracting Monitoring joint
ventures
Determinants of mode of transfer
Nature of technology
Business strategy of TNCs
Capabilities of buyers
Host government’s policy
Absorptive capacity of host countries
Technology diffusion
Local firms trying to imitate technol-ogy
Cooperation between foreign affili-ates and domestic suppliers and cus-tomers
Labor mobility
Conflicts….
Host countriesMay not transfer technologyDeter technology transferExploitation of natural resources and la-
borHome countries
Heavy taxBarriers in expansion of business
Conflict resolution, Win-Win situation
Win –Win situationsFor host countries
Introduction of new technologyImprovement in R&D sectorEconomic growth
For home countriesTax and other incentivesExpansion of businessExport to home country and other
market
Encouraging transfer of technology
Regulatory approach collaboration between in particular de-
veloped and developing nationsMarket based technology approach transfer by whatever means it sees fit incentives by home countries Intra regional technology development agreements between regional develop-
ing countries
Transformation of Chinese automobile industry
1989 first family cars Progressive immergence of ICAMsCHERY, Geely, Great Wall, Hafei e.t.c. Global automakers are having, Sino-for-
eign JVICAMs obtained basic technological capa-
bilities in R&D, manufacturing and salesCHEERY sold 119,800 units overseas in
2007
Role of international technology transfer in the Chinese Automotive Industry
Spreading sides
Direct pathway
Sino-foreign JV(manufacturing &sales)
CHERY & Geely (ICAMs) ( R&D, manufacturing)
Indirect pathway(Spillover)
ICAMs(R&D, manufacturing ,sales)
Conclusions…FDI main source of technology transfer
Policy support in both countries is es-
sential
Create win-win situation
Host countries should improve their
infrastructure & absorptive capability
Thank you!
top related