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Foreign direct investments as an engine of technological change in Malaysia: the role of social interactions

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  • Manja Jonas
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    Abstract

    Many developing countries – including Malaysia – try to leverage FDI for local technological change. But our understanding of inter-firm-level processes of technological learning from FDI is still rather limited. This study attempts to shed some light on the role for social interaction in this issue. Based on firm-level survey data, the paper investigates the extent of social relations underpinning backward linkages and analyses the role of social interaction in technological learning from FDI. From a dynamic social learning perspective of technological change FDIs and local firms are conceptualised as members of knowledge networks, comprising FDIs, local buyers/suppliers and other knowledge sources together with their relations. Results suggest that social interactions play a significant role in encouraging technology transfers between foreign firms and their local suppliers, thus contributing to inter-firm knowledge flows.

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    Bibliographic Info

    Article provided by Inderscience Enterprises Ltd in its journal Int. J. of Technological Learning, Innovation and Development.

    Volume (Year): 3 (2010)
    Issue (Month): 2 ()
    Pages: 164-186

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    Handle: RePEc:ids:ijtlid:v:3:y:2010:i:2:p:164-186

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    Web page: http://www.inderscience.com/browse/index.php?journalID=240

    Related research

    Keywords: technological change; technological learning; technology transfer; social interaction; foreign direct investment; FDI; Malaysia; Japan; USA; Germany; electronics industry; social learning; knowledge networks; knowledge flows.;

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