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

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  • Felix Haifeng Liao

    (Department of Geography, University of Utah, Salt Lake City, UT 84112-9155, USA)

  • Yehua H Dennis Wei

    (Department of Geography and Institute of Public and International Affairs, University of Utah, Salt Lake City, UT 84112-9155, USA)

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.

Suggested Citation

  • Felix Haifeng Liao & Yehua H Dennis Wei, 2013. "Tncs' Technology Linkages with Domestic Firms: An Investigation of the Ict Industry in Suzhou, China," Environment and Planning C, , vol. 31(3), pages 460-474, June.
    • Handle: RePEc:sae:envirc:v:31:y:2013:i:3:p:460-474
    DOI: 10.1068/c11223b
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    Cited by:

    1. Zheye Wang & Yeqing Cheng & Xinyue Ye & Y. H. Dennis Wei, 2016. "Analyzing the Space–Time Dynamics of Innovation in China: ESDA and Spatial Panel Approaches," Growth and Change, Wiley Blackwell, vol. 47(1), pages 111-129, March.
    2. Jacob A Jordaan, 2017. "Producer firms, technology diffusion and spillovers to local suppliers: Examining the effects of Foreign Direct Investment and the technology gap," Environment and Planning A, , vol. 49(12), pages 2718-2738, December.
    3. Wen Zeng & Lili Xiang & Wenhe Zhang, 2020. "Evaluation of Life Quality and its Spatial Mismatch with Local Economic Development in Large Chinese Cities," Applied Research in Quality of Life, Springer;International Society for Quality-of-Life Studies, vol. 15(1), pages 239-258, March.
    4. Jordaan,Jacob Arie & Douw,Willem & Qiang,Zhenwei, 2020. "Multinational Corporation Affiliates, Backward Linkages, and Productivity Spillovers in Developing and Emerging Economies : Evidence and Policy Making," Policy Research Working Paper Series 9364, The World Bank.

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