Foreign Direct Investment, Local Small and Medium Enterprises and Technology Transfer in Developing Countries: A Story from Indonesia

2008 ◽  
Author(s):  
Tulus Tambunan
China Report ◽  
2018 ◽  
Vol 54 (2) ◽  
pp. 175-193 ◽  
Author(s):  
Jungmin Lee ◽  
Jai S. Mah

This article examines the impact of foreign-invested enterprises in the development of China’s automotive industry. It particularly focuses on the case of foreign direct investment (FDI) by a Korean firm, namely, the Hyundai Motor Company, in China. The Chinese government’s policy regarding the automotive industry allowed China’s domestic manufacturers to benefit from technology transfer, as foreign firms were not allowed to invest exclusively in China without a partnership. The contribution of Korea’s investment in China’s automotive industry would comprise the creation of job opportunities, technology transfer and the development of the automobile parts industry. Korea’s investment in the automotive industry of China has policy implications for China and other developing countries trying to expand their technology-intensive industries.


2020 ◽  
Vol 24 ◽  
Author(s):  
‪M. Elfan Kaukab ◽  
Vincent Didiek Wiet Aryanto

Data on real-time marketing performance from micro, small and medium enterprises (MSMEs) selling their products in marketplace e-commerce corporations (MECCs) is a big challenge for researchers studying the performance of MECCs capital structure. This article explores the use of Google Trends to determine the impact of Foreign Direct Investment (FDI) on MECCs’ performance. The findings of the trend analysis are explained using the N-OLI framework. It is found that there was a sharp trend decrease in MECCs with partial FDI (Tokopedia and Bukalapak) and full domestic investment (Blibli).On the other hand, there was a sharp increase in MECCs full FDI (Shopee). Other MECCs with full FDI, namely Lazada, has experienced a decrease but it is not as consistent as that of partial FDI. An increase trend in Shopee has negative correlation with a decline trend in Bukalapak. However, after being grouped, partial FDI has a significantly higher mean score compared to full FDI, and MECCs without FDI has the lowest mean score. This finding shows that in the case of Indonesia, FDI plays a role in encouraging the success of MSMEs, especially in MECCs, which have a combination of FDI and domestic investment.


2020 ◽  
Vol 6 ◽  
pp. 160-166
Author(s):  
Y. D. Cisneros-Reyes ◽  
D. C. Caldera-Gonzalez ◽  
M. G. Arredondo-Hidalgo

Despite Mexican leather footwear industry is traditional, it has not increased or even maintained the level of competitiveness in the global market; the export problems of SMEs (Small and Medium Enterprises) have been studied by some authors but the internationalization (beyond exports and imports and including foreign direct investment, international subcontracting and international technical cooperation) has not been deeply explored so it is not documented how the process of this economic segment is occurring and if that is evolving accordingly to the theory (E.g. Uppsala model). The objective of this study is to analyze the internationalization of SMEs of the Mexican leather footwear industry to know if accumulated knowledge and experience in foreign markets effectively leads the organization to more advanced and complex stages of international exchange. A survey composed by 47 questions was applied to a sample of 21 SMEs of the Mexican leather footwear industry, their experience was also collected by semi-structured interviews. Results show that SMEs are involved in the internationalization process strongly oriented to the development of exports and imports and only a small number of them have been able to reach the stage of foreign direct investment. These results suggest that internationalization is only conceived in terms of imports and exports and efforts are carried out only to those stages even if SMEs could obtain a great benefit from the rest of the internationalization exchange (FDI, international subcontracting and technical cooperation). This behaviour might be due to some factors as: (1) the relatively low level of competitiveness of the Mexican firms in the global industry, (2) the lack of know-how and (3) the vision of the owners and managers of the company.


1969 ◽  
Vol 17 (4) ◽  
Author(s):  
Meir Perez Pugatch ◽  
Rachel Chu

This article examines the effect of the intellectual property (IP) environment in developing countries on the level of foreign direct investment (FDI) and technology transfer occurring in the biopharmaceutical field in these countries. In particular, it considers the correlation between the strength of IP protection in several developing countries (using the Pharmaceutical IP Index) and the number of clinical trials taking place in these countries (as a proxy of biomedical FDI). The article finds that overall, the strength of national pharmaceutical IP environments provide a good estimate of the level of clinical trials taking place in these countries. Accordingly, countries with a more robust level of pharmaceutical IP protection tend to enjoy a greater level of clinical trial activity by multinational research-based companies. In other words, by choosing to improve their level of protection of pharmaceutical IPRs (together with other factors), developing countries may also be exposed to higher levels of biomedical FDI, not least in the field of clinical trials.


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