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Technology Transfer to China through Foreign Direct Investment


  • Stephen Young
  • Ping Lan


YOUNG S. and LAN P.(1997) Technology transfer to China through foreign direct investment, Reg. Studies 31, 669-679. This paper examines the current problems in transferring technology into China through FDI. Empirical evidence shows that the extent of technology transfer is fairly limited but at the level expected given China's developing country status and technological capacities. Given the size and growth of the market, however, substantial opportunities exist for increased technology transfer with appropriate policy changes. The potential for utilizing FDI as an instrument of technological development in a Chinese context is greater than theory would suggest. YOUNG S. et LAN P. (1997) Le transfert de technologie a destination de la Chine par l'investissement direct etranger, Reg. Studies 31, 669-679. Cet article cherche a examiner les obstacles actuels au transfert de technologie a destination de la Chine par l'investissement direct etranger. Des preuves empiriques laissent voir que la portee du transfert de technologie s'avere assez limitee mais au niveau attendu etant donnela situation de la Chine en tant qu'un pays en voie de developpement et sa capacite technologique. Cependant, etant donne l'importance et la croissance du marcheet a l'aide des changements de politique appropries, de grandes possibilites existent quant a un transfert de technologie accru. Les possibilites d'utiliser l'investissement direct etranger comme outil de developpement de la technologie en Chine depasse la theorie. YOUNG S. und LAN P. (1997) Technologietransfer nach China mittels auslandischer Direktinvestierung, Reg. Studies 31, 671-681. Dieser Aufsatz untersucht die gegenwartigen Probleme beim Technologietransfer mittels auslandischer Direktinvestierung (Foreign Direct Investment/FDI) in China. Empirische Beweise zeigen, dass der Umfang des Technologietransfers ziemlich beschrankt ist, doch sich in Anbetracht Chinas Kapazitaten und seines Status als Entwicklungsland auf der zu erwartenden Ebene halt. Angesichts des Umfangs und des Wachstums des Marktes wird sich jedoch bei entsprechenden Anderungen in der Politik reichlich Gelegenheit zu vermehrtem Technologietransfer bieten. Das Potential zur Anwendung von FDI als Instrument der technologischen Entwicklung ist im Falle China grosser als die Theorie vermuten lasst.

Suggested Citation

  • Stephen Young & Ping Lan, 1997. "Technology Transfer to China through Foreign Direct Investment," Regional Studies, Taylor & Francis Journals, vol. 31(7), pages 669-679.
  • Handle: RePEc:taf:regstd:v:31:y:1997:i:7:p:669-679
    DOI: 10.1080/00343409750130759

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    Cited by:

    1. Rita Almeida & Ana Margarida Fernandes, 2008. "Openness and Technological Innovations in Developing Countries: Evidence from Firm-Level Surveys," Journal of Development Studies, Taylor & Francis Journals, vol. 44(5), pages 701-727.
    2. Hewitt-Dundas, Nola & Roper, Stephen, 2002. "Closing the knowledge gap in Irish manufacturing - a north-south comparison," ERSA conference papers ersa02p382, European Regional Science Association.
    3. Duanmu, Jing-Lin & Fai, Felicia M., 2007. "A processual analysis of knowledge transfer: From foreign MNEs to Chinese suppliers," International Business Review, Elsevier, vol. 16(4), pages 449-473, August.
    4. Yifei Sun, 2000. "Spatial Distribution of Patents in China," Regional Studies, Taylor & Francis Journals, vol. 34(5), pages 441-454.
    5. Hübler, Michael, 2011. "Technology diffusion under contraction and convergence: A CGE analysis of China," Energy Economics, Elsevier, vol. 33(1), pages 131-142, January.
    6. Ellis, Paul D., 2010. "International trade intermediaries and the transfer of marketing knowledge in transition economies," International Business Review, Elsevier, vol. 19(1), pages 16-33, February.
    7. Mike Crone & Stephen Roper, 2001. "Local Learning from Multinational Plants: Knowledge Transfers in the Supply Chain," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 535-548.
    8. Yasheng Huang, 2001. "Why More is Actually Less: New Interpretations of China's Labor-Intensive FDI," William Davidson Institute Working Papers Series 375, William Davidson Institute at the University of Michigan.
    9. WHALLEY, John & XIN, Xian, 2010. "China's FDI and non-FDI economies and the sustainability of future high Chinese growth," China Economic Review, Elsevier, vol. 21(1), pages 123-135, March.
    10. Eun, Jong-Hak & Lee, Keun & Wu, Guisheng, 2006. "Explaining the "University-run enterprises" in China: A theoretical framework for university-industry relationship in developing countries and its application to China," Research Policy, Elsevier, vol. 35(9), pages 1329-1346, November.
    11. Yasheng Huang, 1999. "The Institutional Foundation of Foreign-Invested Enterprises (FIEs) in China," William Davidson Institute Working Papers Series 264, William Davidson Institute at the University of Michigan.
    12. Alberto GABRIELE, 2001. "Science And Technology Policies, Industrial Reform And Technical Progress In China. Can Socialist Property Rights Be Compatible With Technological Catching Up?," UNCTAD Discussion Papers 155, United Nations Conference on Trade and Development.
    13. Elissa Braunstein & Gerald Epstein, 2002. "Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-13, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    14. Gawlik, Remigiusz & Teczke, Janusz, 2006. "B2R, R2B - Partner or Hostile Relationships?," MPRA Paper 45342, University Library of Munich, Germany.
    15. Wang, Pien & Tong, Tony W. & Koh, Chun Peng, 2004. "An integrated model of knowledge transfer from MNC parent to China subsidiary," Journal of World Business, Elsevier, vol. 39(2), pages 168-182, May.
    16. Crone, Mike & Roper, Stephen, 1999. "Knowledge Transfers from Multi-national Plants in Northern Ireland," ERSA conference papers ersa99pa053, European Regional Science Association.
    17. Gawlik, Remigiusz & Gorynia, Marian & Teczke, Janusz, 2005. "Malopolska science and business units - in quest for the missing link," MPRA Paper 52192, University Library of Munich, Germany.
    18. Richard Harris, 2001. "Comparing Regional Technical Efficiency in UK Manufacturing Plants: The Case of Northern Ireland 1974-1995," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 519-534.


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