Technology transfer to china: A theoretical approach

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Abstract

Various economic theories can be used to shed some light on the complex phenomenon of technology transfer between two firms belonging to two distinct economies. Vernon's PLC model, Dunning's eclectic theory, and Coase's and Williamson's transaction cost theory highlight various aspects of the firm's transnational economic and business relations. Moreover, the new international trade theories and the more modern concept of National Innovation System emphasize technology as a crucial variable in the determination of commercial flows and of economic growth. Our theoretical approach goes beyond these various approaches in that it is designed to reflect the complexities of the economic, socio-cultural and political conditions prevailing in the recipient country. In particular, the ability of recipient countries to use their bargaining power is highlighted. The case of technology transfer in the Chinese telecommunications equipment industry will illustrate our general framework.

Original languageEnglish
Pages (from-to)277-308
Number of pages32
JournalJournal of Transnational Management Development
Volume3
Issue number3-4
DOIs
Publication statusPublished - 1 Aug 1998

Keywords

  • EU-China
  • Technology transfer
  • Telecommunications equipment
  • Theory

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