International Journal of Technology and Globalization, 4(4), 277-291
The article is written with Carlo Pietrobelli and Marco Sanfilippo.
This study investigates the motivations driving Chinese outward direct investment to Italy. The analysis is based on secondary sources and in- depth interviews with key informants and senior managers of Chinese affiliates in Italy. The evolution of the Chinese pattern of entry in Italy confirms the pattern followed by Chinese firms in other European countries, adding some additional interesting results. Starting from small-scale operations in trade-related activities, Chinese FDI have evolved towards the acquisition of tangible and intangible resources that are deemed necessary to improve China’s presence in international markets and to upgrade their technological and production capacities.
Chinese investments in Italy are increasingly targeting the acquisition of technological capabilities and of design skills and brands to tap local competences available in specialized manufacturing clusters in sectors such as automotives and home appliances. The main industries of specialization of Chinese OFDI in Italy reflect this approach and appear to be related to China’s strategy to increase the sophistication of its exports and to move away from standardized commodities and intermediate manufactures and components.
Manchester University, Manchester.
Seoul Journal of Economics, 23(2): 239-261
The paper is in collaboration with Alessia Amighini and Marco Sanfilippo.
One of the more recent aspects of the globalization process is the rise and the increasing outward expansion of multinational enterprises (MNEs) from developing countries. Among the more promising effects of this phenomenon is a potentially positive development impact: through outward foreign direct investment (OFDI) developing country MNEs acquire new knowledge, which contributes to the technological catch-up of their home countries. This paper reviews the recent literature on OFDI from developing countries, with a critical focus on the theory and evidence of FDI as a channel for technological catch-up. This literature suggests that the features and global business environment of current emerging country MNEs is different from those of latecomer firms in earlier decades. Modularity of production in an increasing number of sectors, combined with weak national innovation systems (NIS) in many developing countries explain why the sourcing of strategic assets – including technology and innovation – from abroad through OFDI has become such an important channel for technological catch-up.