Chinese Indigenous Innovation in the Car Sector
Chinese Indigenous Innovation in the Car Sector
Being Integrated or Being the Integrator
This chapter aims to explore the progress of indigenous innovation in Chinese car industry. The technological capability of Chinese local car-makers developed remarkably slowly in the 1980s–1990s, until the situation was changed by the entry of a group of newcomers. This chapter argues it was exactly the national strategy of “trading market for technology”, associated with the governmental intervention and manipulation of FDIs, that shaped a learning pattern previously in local leading firms that depressed creative attempts at learning. The newcomers stressed the organizational mobilization for learning, and acted as integrators of global technologies from their early stage on. The different strategy and learning patterns led to the significant difference of capability among these firms, particularly in term of capability in generating new products and technologies. The entries of newcomers have changed both the structure and the benchmarks of learning organizing in the Chinese car industry.
Keywords: automobile industry, indigenous innovation, trading market for technology, technological learning, technological integrator, organizational mobilization, global production network
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