Special Issue: Multinationals, Technology and Localization in the Automotive Industry in Asia

Introduction: Critical Issues on Multinational-driven Technological Capability Building and Localization

RAJAH RASIAH

Correspondence AddressRajahRasiahFaculty of Economics and Administration, University of Malaya, 50603 Kuala Lumpur, Malaysia, [email protected]

Faculty of Economics and Administration, University of Malaya, Malaysia

Multinational corporations (MNCs) have become dominant instruments in the diffusion of embodied knowledge in firms in latecomer economies through foreign direct investment (FDI) and licensing activities. Given the importance of MNCs as a critical source of foreign knowledge in latecomer development – indirectly (as in Japan, Korea and Taiwan) and directly (as in Singapore and Malaysia)– this contribution seeks to examine technology diffusion potential to local firms, its extent and its channels in the automotive industry in East, South East and South Asia.

Keywords:

• Asia
• automotive industry
• diffusion
• latecomer development
• multinational corporations
• technology

Notes

¹ Computed from SurfIndia: Web Directory of India, available at: http://www.surfindia.com/automobile/production.html