Strategic technology alliance and rapid accumulation of technological capabilities in emerging economies

This paper examined strategic technology alliance from the perspective of technological catching-up in emerging economies. We developed a conceptual model for describing the phenomenon that strategic technology alliance can effectively improve the absorptive capacity for firms in emerging economies. We used a case study of housing industrialization strategic technology alliance in China to explore the causal relationships between variables in this model. We found that through the mechanisms of technology outsourcing and knowledge sharing strategic technology alliance may effectively improve the absorptive capacity of the firms as a whole. By building up strategic technology alliance, it is possible for firms in the emerging economies to overcome the obstacle that individual firm can not effectively acquire and internalize the advanced technology in developed economies due to their lack of absorptive capacity.

I. INTRODUCTION

Strategic technology alliance is an important mechanism for firms to acquire the external technical knowledge [1], [2]. In the developed economies, strategic technology alliance has become an important strategy for innovation. However, because of the poor foundation of technology and weak absorptive capacity, firms in the emerging economies often cannot effectively acquire and internalize the advanced technology in developed economies. Strategic technology alliance has the potential of sharing knowledge among partners, minimizing and sharing of costs and uncertainty in R&D [3], [4]. By forming strategic technology alliance firms in the emerging economies may overcome the obstacle that individual firm can not effectively acquire and internalize the external knowledge due to their lack of absorptive capacity.