Outward FDI as a Strategy for Technology Catch-Up: A Case Study of Two Indian Automotive Firms

2020 ◽  
Author(s):  
Reji K. Joseph
Keyword(s):  
Author(s):  
Jae-Yong Choung ◽  
Hye-Ran Hwang

In recent years, Korean firms have struggled with slowdowns of both these world-first developments and their export to overseas markets. Despite technological development process, however, important questions remain with respect to how non-technological capabilities such as organizational, regulatory, and financial innovation affect accumulation and failure. To address these concerns, the key components of a conceptual framework for investigating non-technological capabilities for transition consist of the existing government, R&D organizations, and inter-firm relations. We analyze the performance and limitations of non-technological capabilities in the process of transition from the catch-up system to the innovation-based system in Korea. Using the case study of system rather than mass products, we hope that this research can contribute to the understating of non-technological features of energy-sector transitional dynamics in Korea. Finally this research would provide a new approach to the challenges from a non-technological aspect and can also provide differentiated science and technology policy strategies for the catch-up economies.


2013 ◽  
Vol 14 (2) ◽  
pp. 276-291 ◽  
Author(s):  
Koi Nyen Wong ◽  
Soo Khoon Goh

This paper aims to explore the causality pattern between outward foreign direct investment (OFDI) and major external trade components (i.e. exports and imports of merchandise as well as services) using Singapore as a case study, since it is one of the largest outward investors in the Asian region and it is overtly trade-dependent. The findings reveal that there is evidence of an OFDI-led trade hypothesis, particularly with regard to merchandise exports and imports, which is an indication OFDI opens important channels for intra-firm trade activities, home country sourcing and backward integration. However, there is no evidence of causality relationships between Singapore's OFDI and services trade because the purpose of such services is mainly to provide a market presence in the consuming country. As such, Singaporean multinationals are likely to outsource their services either from the host country services sector or from their own services-supporting subsidiaries that have been relocated abroad. The present study provides implications for policy formulation to strengthen OFDI-services trade linkages.


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