Learning from foreign TNCs: a study of technology upgrading by local suppliers to AB Volvo in Asia and Latin America Online publication date: Fri, 10-Apr-2009
by Inge Ivarsson, Claes Goran Alvstam
International Journal of Technology Management (IJTM), Vol. 48, No. 1, 2009
Abstract: Our data from local suppliers to AB Volvo's truck and bus-plants in Brazil, China, India and Mexico show that foreign TNCs contribute to technology-learning and improved adaptive technological capabilities, which help suppliers to expand businesses with domestic and international OEM-customers in many industries and markets. This support the evolutionary perspective that technology transfers from industrialised to developing economies are based on local inter-firm linkages arising from regular manufacturing activities of foreign TNCs. A policy lesson is that business-linkages with foreign TNCs with a low-volume demand for high-quality products can result in technology-upgrading among small local suppliers who make necessary learning-investments.
Online publication date: Fri, 10-Apr-2009
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