Technology transfer and catch-up; lessons from the commercial aircraft industry

Abstract

This paper analyses the technology development and technology transfer strategies in the aircraft manufacturing industry for four industrially developing countries. It is concluded from four case studies that technology catch-up is extremely difficult due to aircraft technology characteristics. Based on this, several propositions are developed concerning technology transfer, catch-up and several aspects of learning.

Interrupted innovation: emerging economies in the structure of the global aerospace industry

“…The studies by Marques (2004), Marques and Oliveira (2009) and Mani (2010) are good examples of how the sectoral innovation system facilitated technological capabilities accumulation in Brazil and India. Baskaran (2001) and Steenhuis et al (2007) emphasized the importance of both indigenous efforts as well as interactions between domestic and foreign actors, because a strategy of self-reliance is bound to fail. Romero (2010) discussed the recent trend of foreign aerospace firms moving to a developing country (Mexico), and shows the attracting force of clusters.…”

“…In Phase 3, the existing technology would be further developed and investment would be made into new technologies to design and produce new products. Finally, in Phase 4, large-scale basic research capabilities were to be acquired and implemented to generate new, competitive generic technologies (Steenhuis et al 2007).…”

“…See i.e (Steenhuis et al 2007;Figueiredo et al 2008;Niosi and Zhegu 2008;Marques and Oliveira 2009;Niosi 2009;Mani 2010;Romero 2010). …”

New entrants and overcapacity: lessons from regional aircraft manufacturing

“…The production of aircraft is characterised by a requirement for skilled labour, a long production throughput-time, low production rates, and often a low total production volume for a specific aircraft type (Steenhuis et al, 2007). Out of all the jet aircraft that have been produced, only ten aircraft types have had sales in excess of 1,000 units.…”

“…IAe is currently still producing turboprop aircraft although it has stopped the production of commercial jets after 1998, the International Monetary Funds ordered that no more financial support and privileges were to be given to this state company (Stackhouse, 1998). Romaero is another state-owned company that eventually gave up producing jet aircraft due to financial constraints although it still produces turboprops (Steenhuis et al, 2007).…”