Unlocking MNEs' Tech Secrets Boosts Local Firms' Innovation in IJVs
International joint ventures are a good way for local companies to learn technology from big multinational companies. The key to getting this technology is not just how well the local company can absorb it, but also how good the multinational company is at transferring it. A study looked at joint ventures in a high-tech area in Fujian and found that when the multinational company has the right knowledge, experience, communication, and management support, the local company learns better. When the multinational company also trains the local employees, the learning is even better.