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Ownership and technological capabilities in Indonesia's automotive parts firms

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  • Rajah Rasiah
  • Abdusy Amin

Abstract

This paper seeks to examine how local automotive parts firms’ technological capabilities have evolved vis-à-vis foreign firms, following increased liberalization from the late 1990s. The evidence amassed shows that there were no obvious statistical differences in human resource and process technology capabilities between foreign and local firms in 2006. Although foreign firms enjoyed superior product technologies with access to their subsidiaries, local firms have invested more in research and development technology to compete with them. The results confirm that the liberalization experience has driven rather than discouraged stronger initiatives in local firms to raise technological capabilities, though foreign firms still enjoy higher export intensities.

Suggested Citation

  • Rajah Rasiah & Abdusy Amin, 2010. "Ownership and technological capabilities in Indonesia's automotive parts firms," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 15(3), pages 288-300.
    • Handle: RePEc:taf:rjapxx:v:15:y:2010:i:3:p:288-300
    DOI: 10.1080/13547860.2010.494909
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    References listed on IDEAS

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    1. Hill,Hal, 2000. "The Indonesian Economy," Cambridge Books, Cambridge University Press, number 9780521663670, September.
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    Cited by:

    1. Davy, Elder & Hansen, Ulrich E., 2023. "A firm-level perspective on windows of opportunity," Technology in Society, Elsevier, vol. 75(C).

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