TY - JOUR

T1 - Knowledge absorption of optical technology companies in Shanghai, Pudong

T2 - Successes, barriers and structural impediments

AU - Liefner, Ingo

AU - Brömer, Christian

AU - Zeng, Gang

N1 - Funding Information: The authors wish to thank participants of the 2010 AAG conference paper sessions on “China and Globalization” and the participants of the 2010 Open Workshop on “Transnational Corporations, Knowledge and Networks in China’s Regional Economy” in Giessen, Germany, for helpful comments. The OT company survey in Pudong was supported by the DFG (grant no. Li981/5-1 ). Four anonymous reviewers provided comments and suggestions that were very much appreciated.

PY - 2012/1

Y1 - 2012/1

N2 - Knowledge absorption theories argue that technologically less advanced companies (latecomer firms) can substantially upgrade their knowledge base through active knowledge absorption. These theories view knowledge absorption as a stepwise process which includes a linkage phase, a leverage phase and a learning phase (LLL concept). Case studies in Taiwan and Korea have shown that latecomer firms can indeed follow this approach and catch-up technologically with advanced firms. This paper aims to discuss the relevance of the LLL concept in China using the example of Optical Technology (OT). It reveals that the concept is not universally applicable. In the case of China, the ownership of companies determines successes and failures of strategies for increasing knowledge absorption. Private firms face substantial difficulties in establishing the necessary linkages; the upgrading of foreign-invested enterprises (FIEs) is controlled by their parent companies. This result has implications for theoretical concepts of learning and innovation in China, as well as for policy.

AB - Knowledge absorption theories argue that technologically less advanced companies (latecomer firms) can substantially upgrade their knowledge base through active knowledge absorption. These theories view knowledge absorption as a stepwise process which includes a linkage phase, a leverage phase and a learning phase (LLL concept). Case studies in Taiwan and Korea have shown that latecomer firms can indeed follow this approach and catch-up technologically with advanced firms. This paper aims to discuss the relevance of the LLL concept in China using the example of Optical Technology (OT). It reveals that the concept is not universally applicable. In the case of China, the ownership of companies determines successes and failures of strategies for increasing knowledge absorption. Private firms face substantial difficulties in establishing the necessary linkages; the upgrading of foreign-invested enterprises (FIEs) is controlled by their parent companies. This result has implications for theoretical concepts of learning and innovation in China, as well as for policy.

KW - Absorption theories

KW - China

KW - Competitiveness

KW - Cooperation

KW - Optical technology

KW - Ownership form

UR - http://www.scopus.com/inward/record.url?scp=79960163644&partnerID=8YFLogxK

U2 - 10.1016/j.apgeog.2011.01.012

DO - 10.1016/j.apgeog.2011.01.012

M3 - Article

AN - SCOPUS:79960163644

VL - 32

SP - 171

EP - 184

JO - Applied geography

JF - Applied geography

SN - 0143-6228

IS - 1

ER -