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The Characteristics of Technology Transfer into the Chinese Steel Industry and the Valuation Problem
Abstract
This paper describes some empirical studies that have been carried out to investigate the characteristics of the Chinese steel industry in terms of technological renovation and its relationship with the more general question of technology tiansfer to China. Consideration is given to the question of technology valuation that is an issue when technology is being transferred between owners and acquirers. Comparisons are made between considerations of value in steel making and the results of earlier investigations in the machine tool sector.
... In the case of China, for example, it is estimated that about 80% of the foreign direct investment has been in the form of technology, much of which has been transferred into high value-adding manufacturing industries and this is generally regarded as being one of the main contributors to its success in becoming a major international competitor in a number of key sectors. Some of the industries into which this technology has been transferred include machinery, telecommunications equipment, steel making, consumer electronics, pharmaceuticals etc., as illustrated in the earlier case studies and elsewhere (Bennett et al, 1996;He et al, 1998). ...
This paper addresses the question of how enterprises can improve their competitiveness through the acquisition and development of technology, and hence how countries are able to raise the level of industrial development and grow their GDP. It takes the example of East Asia to demonstrate how fast economic growth can be achieved through the "stages" approach to technology acquisition and development. It also provides some case studies of technology transfer to China as a means of illustrating how successful transfer can be achieved and the problems that can be encountered. Finally, some comparisons are made with, and among, the Arab countries and an attempt is made to draw some lessons for the development of the Arab world from experiences gained elsewhere.
... China, for example, it is estimated that about 80% of the foreign direct investment has been in the form of technology, much of which has been transferred into high value-adding manufacturing industries and this is generally regarded as being one of the main contributors to its success in becoming a major international competitor in a number of key sectors. Some of the industries into which this technology has been transferred include machinery, telecommunications equipment, steel making, consumer electronics, pharmaceuticals etc., as illustrated in the earlier case studies and elsewhere (Bennett et al, 1996; He et al, 1998). However, when examining the situation in the Arab world the picture becomes less clear. ...
This paper addresses the question of how enterprises can improve their competitiveness through the acquisition and development of technology, and hence how countries are able to raise the level of industrial development and grow their GDP. It takes the example of East Asia to demonstrate how fast economic growth can be achieved through the ''stages'' approach to technology acquisition and development. It also provides some case studies of technology transfer to China as a means of illustrating how successful transfer can be achieved and the problems that can be encountered. Finally, some comparisons are made with, and among, the Arab countries and an attempt is made to draw some lessons for the development of the Arab world from experiences gained elsewhere.
Results of complementary surveys of foreign and Chinese manufacturing enterprises with respect to their objectives and expectations regarding technology transfer into China show that the major strategic objective of foreign enterprises, to gain access to the Chinese market, fits well with Chinese enterprises’ main objective of improving domestic competitiveness but less well with that of accessing world markets through technology transfer. Foreign firms rate highly the capability of Chinese enterprises to learn new technologies and also find the Chinese macro environment for business favourable. The survey results provide information that will help managers with their negotiations on co-operating with prospective partners for the transfer of technology as well as assisting policy makers who wish to facilitate more effective transfer arrangements.
In recent years international technology transfer has been used increasingly as a mechanism for globalising manufacturing and is seen to be playing a critical role in establishing collaborative ventures between enterprises in developed and developing countries. In China, technology transfer agreements are
not only driven by the foreign suppliers' motive to enter the Chinese market but also the desire of local enterprises to acquire technology. One of the major problems in technology transfer is how to establish the value of technology. Four value components have been identified by the authors for incorporation into a 'technology valuation' model. Of these components, 'transfer value' is of greatest importance to both suppliers and acquirers. This paper describes the framework for evaluating 'transfer value' and progress with development of a technology valuation model. The main focus of the research is on machine tool technology being transferred from the UK to China. This paper is based on preliminary surveys of machine tool manufacturers and users in China.
Evaluation Models for Global Manufacturing: The Valuation of Technology when Transferred fiom the UK to the China Machine Tool Industry
- D J Bennett
- K Vaidya
- H Zhao
Bennett D J, Vaidya K G and Zhao H "Evaluation Models for Global Manufacturing: The Valuation of
Technology when Transferred fiom the UK to the China Machine Tool Industry", proceedings of Workshop on
International Manufacturing, Cambridge University, September 1996.
Globalized Manufactwing and Technology Transfer Sb-ate~es -The develonrnent of a Tech~oloev Valuation Model". in Mueller H
- H Y Wang
H Y and Wang X M (1997) "Globalized Manufactwing and Technology
Transfer Sb-ate~es -The develonrnent of a Tech~oloev Valuation Model". in Mueller H. Persson J-G and Lumsden
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