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

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.

Analyzing the Space–Time Dynamics of Innovation in China: ESDA and Spatial Panel Approaches

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Producer firms, technology diffusion and spillovers to local suppliers: Examining the effects of Foreign Direct Investment and the technology gap

“…Girma and Go¨rg (2007) estimate FDI spillovers in the electronics and engineering industries in the UK and find that a decreasing technology gap may favour FDI spillovers. Liao and Wei (2013) present findings from a firm level survey of the ICT industry in Suzhou, China that indicate that the technology gap may lower the occurrence of technology linkages.…”

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Spatial inequality and dynamics of foreign hypermarket retailers in China

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