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.