Technology transfer to China in automobile industry: Difference between Japanese and western firms

Based on data from case studies conducted in China, this paper compares the technology transfer styles of Japanese and western firms in China´ automobile industry. The main focus is upon differences in the extent of these firms´ integration into China´s innovation systems through technology transfer. This study shows that although both Japanese and western firms are taking roots in China´s economy western firms develop more linkages with Chinese indigenous firms. Japanese firms are less integrated into China´s innovation systems. This paper explores the reasons for this and some of the consequences and implications both for business management and for the development of automobile industry in China.