Transcript China`s technology transfer: lessons learnt

Article Summaries and Presentation
China’s Technology Transfer:
Lessons Learnt
Introduction
Recent experience shows that science and
technology take important role in economics
development for developing or less developed
countries. Science and technology development in
China, a neighbor country of Vietnam with
similarities in political and economics mechanism,
should be lessons learnt for Vietnam in the course
of industrialization and modernization
Slide 2
Team Members
V_BluePrint
Mr. Pham Dinh Doan
Director
Phu Thai Co., Ltd
Ms. Le My Hanh
Chief Controller
VID Public Bank
Mr. Nguyen Thang Quang Mr. Nguyen Anh Tuan
Officer
Manager
EVN
Vietnam Auditing Company
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Outline
 Reasons for Selection of Articles
 Summaries of Articles
 Integration of Articles
 Lessons Learnt from China
 Discussions on Vietnam
Slide 4
Reasons for Selection
 Similar political background
 Transitional economy
 Proven success
 Potential future
Slide 5
Outline
 Reasons for Selection of Articles
 Summaries of Articles
 Integration of Articles
 Lessons Learnt from China
 Discussions on Vietnam
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Summaries of Articles
 “Technology transfer: A mode of collaboration
between the European Union and China”, by
Andreosso-O’callaghan, Bernadette and Quian,
Wei
 Overview of technology transfer policy in China
through encouragement of FDI and transfer
from import mode to technology tranfer
 R&D policy
 Relationship with EU in TT
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Summaries of Articles
 “Breaking in China: Strategic considerations for
multinational corporations”, by Ji Li, Gongming
Quian, Kevin Lam and Dennis Wang
 A study of 233 large multi-national
corporations investing in China
 Capital and technology intensive strategy
has better performance than labor intensive
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Summaries of Articles
 “Negotiation a joint venture in China: The
problem of market access”, by John Allee and
Doulaglas M. Sanford
 Problems in negotiation to set up a joint
venture in physical distribution system
between Japan and China due to cross
cultural issues and local administrative
problems
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Outline
 Reasons for Selection of Articles
 Summaries of Articles
 Integration of Articles
 Lessons Learnt from China
 Discussions on Vietnam
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Integration of Articles
 Observation
 Technology transfer policy: From import into
self innovation and FDI encouragement
 China’s view as technology buyer’s
perspective
 MNC and JV’s perspective as sellers to China
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Outline
 Reasons for Selection of Articles
 Summaries of Articles
 Integration of Articles
 Lessons Learnt from China
 Discussions on Vietnam
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Lessons Learnt from China
 Science and Technology Highlights in
10 years
 Highest numbers of mobile phones in the
world (190 mil)
 The world second country in computer
using (50 mil) and the second internet
user after US
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Lessons Learnt from China
 Science and Technology Highlights in
10 years
 Science cooperation with 152 countries
 3rd generation mobile phone (3G/TDSCDMA)
 Involvement in space and biology
development
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Lessons Learnt from China
 Technology Transfer Policy
 From import into technology transfer
 Export oriented
 Priority industries
 Encourage FDI
 Encourage self learning and innovation
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Lessons Learnt from China
 Modes of Technology Transfer
 FDI
 Licensing
 Technical advise
 Consultancy
 Co-production
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Lessons Learnt from China
 FDI Trends
 1979 - 1991: Labor intensive
 1992 - 2000: Capital intensive
 2001 - present: Technology intensive
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Lessons Learnt from China
 FDI Encouragement Strategy
 Geographical regions: Coastal & large
provinces
 Priority industries: 12 industries
 Investment incentives
 Special Economics Zones
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Lessons Learnt from China
 R&D Strategy
 2% GDP year 2000 in which 40% for
basic R&D
 Encourage local corporate R&D (60% of
total national R&D budget)
 400 internationally found R&D institutions
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Lessons Learnt from China
 Science and Technology Strategy
since 1991
 “Human capital attaining” strategy
 Appropriate salary, compensation, shares
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Lessons Learnt from China
 Education and Training
 Historical track records
 Largest system in the world
 University entry exam nationally standardized
 Centralized management
 Leadership’s awareness
 Trends of studies in foreign countries
 International students in China
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Lessons Learnt from China
 Technology Transfer Constraints
 MNCs & FIEs prefer 100% ownership mode
 Cross cultural issues in JVs
 Gap between central & local governments
 Corruption
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Outline
 Reasons for Selection of Articles
 Summaries of Articles
 Integration of Articles
 Lessons Learnt from China
 Discussions on Vietnam
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Discussions on Vietnam
 Vietnam Industry Highlights
 Industry/GDP: 21.86% (1995) -> 26.71% (1998) ->
29.05% (1999)
 Average growth: 12.7%/year
 Industry/exports: 60%
 Investment for industry by FDI: 61% (while FDI accounts
32% GDP)
 Industry revenue of FDI: 25% (1995) -> 32% (1998) ->
34.7% (1999)
 67 industrial zones with high technology capabilities,
exporting 50% of FDI
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Discussions on Vietnam
 Three Groups of Industries
 Competitive group: Textile & garment, shoe, metal
components manufacturing
 Future competitive group if protected by Government
in infant stage: Fibre, electric equipment, electronics,
IT, chemicals, paper, glass & chinaware, construction
materials, processing foods
 Low competitive group: Steel
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Discussions on Vietnam
 Implemented Industry Development Policies
 Economics reform
 Adjustment of economics structure through adjustment of
investment capital
 Industry development: focus on priority industries which
add more value, labor intensity, export oriented
 Legal system improvement
 SOE reform, private sector development, financial sector
reform, administration reform
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Discussions on Vietnam
 Industry Development Strategy
 Building strong enough industry with import substitution
strategy
 Export oriented strategy
 Exploring national competitive advantages
 Mixed between technology and labor intensities
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Discussions on Vietnam
 Government’s Support Policies
 Sufficient education and training and effective
utilitisation of human resources
 Support to science and technology development
(through policies of import or FDI) and to corporate
level capability building; enhance relationships
between corporate and R&D institutions
 Attracting investment capital in priority industries (local
and FDI capitals)
 Protection of priority industries and encourage exports
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Discussions on Vietnam
 Targets for Industry Development
 2010: average growth rate 10-15%; accounting for 4041% GDP; using 23-24% labor; 70-75% exports
 Adjustment of industrial structure in economics
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Discussions on Vietnam
 Solutions To Reach Targets
 Early establishment of industry development policies
 Establishment of strategy for efficient using of state’s
budget for industrial development
 Establish of long term economics policies to support
corporate development
 Continuing economics reform
 Improvement of Government’s administration
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Discussions on Vietnam
 Challenges of Vietnam Industries
 Lower competitive capabilities in compared with other
countries
 Out of date technology
 Low consumption of industrial products
 Low rate of processing industry (foods)
 Low value added processing products (textile & garment)
 Problems in economics mechanism (SOE, private sector,
financial sector, administrative procedures, etc)
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End of Presentation