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Host-country Absorption of Technology: Evidence from Automotive Supply Networks in Eastern Europe

Author

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  • Jochen Lorentzen
  • Peter MØllgaard
  • Matija Rojec

Abstract

This paper provides an analysis of technology transfer in automotive supply networks in six EU candidate countries with important vehicle (component) industries. We survey more than 400 firms, representing roughly half of the automotive supply industry. In addition, we have in-depth information from 39 case studies. We address the generation, the origin, and the quality of technology transfer. In terms of generation, we look at the determinants of who receives technology along the value chain, and who passes it on. In terms of origin, we compare local and foreign-owned firms and those with mixed ownership. We also compare differences across the countries. In terms of quality, we discuss the change-inducing effects of technology as perceived by recipient firms. Our results confirm the salience of networks and the key role of MNCs for the generation and diffusion of technology. We also find that diffusion of technology happens within the countries so that host countries absorb more technology than is immediately apparent and commonly believed.

Suggested Citation

  • Jochen Lorentzen & Peter MØllgaard & Matija Rojec, 2003. "Host-country Absorption of Technology: Evidence from Automotive Supply Networks in Eastern Europe," Industry and Innovation, Taylor & Francis Journals, vol. 10(4), pages 415-432.
    • Handle: RePEc:taf:indinn:v:10:y:2003:i:4:p:415-432
    DOI: 10.1080/1366271032000163658
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    References listed on IDEAS

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    1. Jozef Konings, 1999. "The Effect of Direct Foreign Investment on Domestic Firms: Evidence from Firm Level Panel Data in Emerging Economies," LICOS Discussion Papers 8699, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    2. Yuko Kinoshita, 2000. "R&D and technology spillovers via FDI: Innovation and absorptive capacity," CERGE-EI Working Papers wp163, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    3. Greenaway, David & Görg, Holger, 2002. "Much Ado About Nothing? Do Domestic Firms Really Benefit from Foreign Investment?," CEPR Discussion Papers 3485, Centre for Economic Policy Research.
    4. Yuko Kinoshita, 2000. "R&D and Technology Spillovers via FDI: Innovation and Absorptive Capacity," William Davidson Institute Working Papers Series 349, William Davidson Institute at the University of Michigan.
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    Cited by:

    1. Contreras, Oscar F. & Carrillo, Jorge & Alonso, Jorge, 2012. "Local Entrepreneurship within Global Value Chains: A Case Study in the Mexican Automotive Industry," World Development, Elsevier, vol. 40(5), pages 1013-1023.
    2. Miroslav Šipikal & Milan Buček, 2018. "The Role of FDI in Regional Innovation and Its Influence on the Emergence of Knowledge Spillover Effects," Advances in Spatial Science, in: Jan Stejskal & Petr Hajek & Oto Hudec (ed.), Knowledge Spillovers in Regional Innovation Systems, pages 195-218, Springer.
    3. Simona, Gentile-Lüdecke & Axèle, Giroud, 2012. "Knowledge Transfer from TNCs and Upgrading of Domestic Firms: The Polish Automotive Sector," World Development, Elsevier, vol. 40(4), pages 796-807.
    4. Joana Almodovar & Aurora A.C. Teixeira, 2014. "Assessing the Importance of Local Supporting Organizations in the Automotive Industry: A Hybrid Dynamic Framework of Innovation Networks," European Planning Studies, Taylor & Francis Journals, vol. 22(4), pages 841-865, April.
    5. Lorentzen, Jochen, 2005. "The absorptive capacities of South African automotive component suppliers," World Development, Elsevier, vol. 33(7), pages 1153-1182, July.
    6. Jan Stejskal & Petr Hajek & Oto Hudec (ed.), 2018. "Knowledge Spillovers in Regional Innovation Systems," Advances in Spatial Science, Springer, number 978-3-319-67029-4.
    7. Miroslav Sipikal, 2013. "Tailoring Innovation Policies to Sectors and Regions – The Case of Slovakia," DANUBE: Law and Economics Review, European Association Comenius - EACO, issue 4, pages 277-291, December.
    8. Andrea Caragliu & Camilla Lenzi & Miroslav Šipikal & Milan Buček, 2013. "The role of FDIs in regional innovation: Evidence from the automotive industry in Western Slovakia," Regional Science Policy & Practice, Wiley Blackwell, vol. 5(4), pages 475-490, November.
    9. Lorentzen, Jochen & Møllgaard, Peter, 2000. "VERTICAL RESTRAINTS AND TECHNOLOGY TRANSFER: Inter-firm Agreements in Eastern Europe’s Car Component Industry," Working Papers 9-2000, Copenhagen Business School, Department of International Economics and Management.
    10. Nguyen, Chi-Hai & Ngo, Quang-Thanh & Pham, My-Duyen & Nguyen, Anh-Tuan & Huynh, Ngoc-Chuong, 2021. "Economic linkages, technology transfers, and firm heterogeneity: The case of manufacturing firms in the Southern Key Economic Zone of Vietnam," MPRA Paper 109670, University Library of Munich, Germany.
    11. Giroud, Axèle, 2007. "MNEs vertical linkages: The experience of Vietnam after Malaysia," International Business Review, Elsevier, vol. 16(2), pages 159-176, April.

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