Technological Catching-up of Latecomer Firms through External Technology Acquisition: Evidence from GEELY Auto Company in China

Abstract:

External technology acquisition has been viewed as an important method to realize technological catching-up. However, only a few studies have been on technology acquisition strategy of auto firms. This study develops theories related technological catching-up through external technology acquisition of a Chinese auto firm to reveal that: first, integrating different streams of technological knowledge is crucial to innovation; second, external technology acquisition apparently in terms of technological performance is based on accumulation of internal R&D inputs. These results provide important suggestions for late starting companies to catch up with leaders, formulate technology acquisition strategy and strengthen technological capabilities.