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FDI, R&D and Innovation Output in the Chinese Automobile Industry

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The Rise of Technological Power in the South

Abstract

After joining the World Trade Organization (WTO) China experienced a major inflow of Foreign Direct Investment (FDI). Many famous automobile firms from developed countries decided to invest in China in order to cooperate with domestic firms. The question is whether FDI benefited the development of the Chinese automobile industry. On the one hand, foreign investors brought with them new technologies, methods of management and worldwide network linkages, but on the other they might have crowded out local producers of complete goods and components in the automobile industry.

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© 2010 Chen Fang and Pierre Mohnen

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Fang, C., Mohnen, P. (2010). FDI, R&D and Innovation Output in the Chinese Automobile Industry. In: Fu, X., Soete, L. (eds) The Rise of Technological Power in the South. Palgrave Macmillan, London. https://doi.org/10.1057/9780230276123_11

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