Entrepreneurs, Multinational Enterprises and Policy
Edited by Maureen McKelvey and Sharmistha Bagchi-Sen
Chapter 12: Tapping into Western technologies by Chinese multinationals: Geely’s purchase of Volvo Cars and Huawei’s hiring of Ericsson employees in Sweden
This chapter focuses on how firms can access, and tap into, relevant external knowledge for innovation, examining how this happens within two industries that are highly dependent upon scientific and technical knowledge for innovations within their products. One aspect of innovation spaces in Asia is how Western companies are moving into Asia. This chapter addresses another aspect, how Asian companies are searching for, and accessing, technological opportunities and market opportunities in the West. The underlying mechanism studied is how and why Asian companies establish subsidiaries in Europe, with a focus on Sweden. This chapter provides two case studies, which provide insights and understanding about two different mechanisms by which firms from emerging markets can use their establishment, networks, and resources (including human resources) as vital sources of especially technological and scientific knowledge. Specifically, these are mechanisms whereby Chinese companies can use the geographical and knowledge capabilities in Sweden.
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