Learning, Upgrading, and Innovation in the South African Automotive Industry

Abstract

This article addresses the innovation activities of automotive component manufacturers in South Africa. It looks at the technological trajectory of a handful of firms that stand out from the crowd and analyses the results of their endeavours in the context of their interaction with foreign capital and their internal upgrading and research and development agenda. The analysis makes use of eight case studies and illustrates the conditions under which indigenous innovation in the automotive industries can happen in a developing country. This finding contradicts at least part of the conventional wisdom concerning the location of innovation activities in global car value chains. Questions that need further attention include among others the overall functioning of South Africa's national innovation system, and changes over time in the perception of local innovation potential by car assemblers.

Cet article est consacré aux activités d'innovation des manufactures de composantes automotrices en Afrique du Sud. Il suit la trajectoire technologique d'une poignée d'entreprises qui sortent du lot et analyse le résultat de leurs efforts dans le contexte de leur interaction avec le capital étranger, leur évolution interne et leur agenda de recherche et de développement. L'analyse se base sur huit études de cas et illustre les conditions dans lesquelles l'innovation indigène dans les industries automotrices est possible dans un pays en développement. Cette découverte contredit du moins en partie les thèses traditionnelles concernant la localisation des activités innovatrices à l'intérieur des chaînes mondiales de valeurs d'automobiles. Certaines questions ont besoin d'être analysées davantage, entre autres le fonctionnement général du système national d'innovation en Afrique du Sud et les changements dans le temps des perceptions concernant l'innovation locale potentielle par les assembleurs d'automobiles.

Notes

Jochen Lorentzen is at the Department of International Economics and Management, Copenhagen Business School, and the School of Development Studies (SODS), University of KwaZulu-Natal; Justin Barnes is Managing Director, B&M Analysts, Durban. The managers of a number of automotive component manufacturers who chose to remain anonymous generously made time available to answer many questions. Without their insights the authors would not have been able to write these case studies. Mike Morris and Imraan Valodia helped to clarify some ideas. Workshop participants in Copenhagen, Oslo, and Durban provided constructive comments. The authors are grateful to all of them, and to Rajneesh Narula for encouraging them to write this article in the first place. Any errors or omissions are the authors' own.

Additional information

Notes on contributors

Justin Barnes

Jochen Lorentzen is at the Department of International Economics and Management, Copenhagen Business School, and the School of Development Studies (SODS), University of KwaZulu-Natal; Justin Barnes is Managing Director, B&M Analysts, Durban. The managers of a number of automotive component manufacturers who chose to remain anonymous generously made time available to answer many questions. Without their insights the authors would not have been able to write these case studies. Mike Morris and Imraan Valodia helped to clarify some ideas. Workshop participants in Copenhagen, Oslo, and Durban provided constructive comments. The authors are grateful to all of them, and to Rajneesh Narula for encouraging them to write this article in the first place. Any errors or omissions are the authors' own.