Technology Transfer? The Rise of China and India in Green Technology Sectors

Abstract

International technology transfer is central to the debate about how to curb the carbon emissions from rapid economic growth in China and India. But given China and India's great progress in building innovation capabilities and green industries, how relevant is technology transfer for these countries? This paper seeks insights from three green technology sectors in both countries: wind power, solar energy and electric and hybrid vehicles. We find that conventional technology transfer mechanisms such as foreign direct investments and licensing were important for industry formation and take-off. However, as these sectors are catching up, new 'unconventional transfer mechanisms' such as R&D partnerships and acquisition of foreign firms have become increasingly important. We argue that there is limited practical and analytical mileage left in the conventional approach to technology transfer in these sectors in China and India. We argue that the emphasis should shift from transfer of mitigation technology to international collaboration and local innovation.

Learning and technological capability building in emerging economies: The case of the biomass power equipment industry in Malaysia

“…The diverging interest between technology owners and imitators may therefore comprise a central limitation in learning by imitation as opposed to learning through more formalised partnerships with foreign technology partners. It should, however, be noted that learning by imitation might be critical in the infant stages of technological capability building, but becomes less important as firms progress towards higher levels of innovative capability (Kim, 1997;Chen, 2009;Lema and Lema, 2012).…”

“…A key question addressed in these studies is the extent to which foreign investment has increased indigenous capabilities in developing countries to engage in advanced product development (Brewer 2008;Altenburg, 2008;Lema and Lema, 2012). Existing work pays particular attention to the role of national political and institutional conditions for industry development (see e.g.…”

Firm-level technology transfer and technology cooperation for wind energy between Europe, China and India: From North–South to South–North cooperation?

“…Current literature highlights how historically Asian and European wind firms were engaged in different forms of technology transfer and technology cooperation and how Asian wind firms are increasingly catching up (e.g. Lewis, 2013;Gosens and Lu, 2013;Lema and Lema, 2013;Lema and Lema, 2012;Schmitz and Lema, 2013;Dai et al, 2014). Some literature also mentions how more recently Chinese, India and European wind energy firms are engaged in a complex set of technology cooperations (e.g.…”

“…Some literature also mentions how more recently Chinese, India and European wind energy firms are engaged in a complex set of technology cooperations (e.g. Schmitz and Lema, 2013;Lema and Lema, 2012).…”

Making sense of policy for climate technology development and transfer

“…Murphy and colleagues hypothesize that this may be explained, in part, by the existing technology base of these latter countries, which have a significant existing knowledge stock and technological base. Elsewhere, Dechezleprêtre et al (2008) and Lema and Lema (2012) have noted that the kind of technology transfer in CDM projects is dependent on the technological capabilities of the host country, and Phillips, Das, and Newell (2013) note that aspects such as the political economy of the recipient country can also play an important role in defining to what extent the CDM could help build technological capabilities.…”