Whitaker Ideas Forum: Seamus Grimes, From Foreign Technology Dependence Toward Greater Innovation Autonomy–China’s Integration into the ICT Global Value Chain

The Fall 2017 Whitaker Ideas Forum series continues on 27 September with a seminar by Seamus Grimes of the Innovation and Structural Change research cluster on the topic of ‘From Foreign Technology Dependence Toward Greater Innovation Autonomy: China’s Integration into the ICT Global Value Chain‘.

The initial policy focus involved exchanging market access for foreign companies for technology transfer, with many foreign companies having to form joint ventures (JVs) with local companies. During this earlier period, China’s high level of dependence on foreign sources of technology placed it in a relatively weak position, and while some sectors, such as telecommunications did benefit from technology transfer the overall degree of technology spillover from foreign companies was disappointing. Over time, China’s technological capabilities have developed as is reflected in the emergence of a small number of national brands which have been highly successful in competing with foreign brands in the domestic market and in some cases internationally. The emergence of China’s major internet companies, albeit in a strongly controlled but intensely competitive market has also been impressive. China however suffers from ongoing weaknesses in supplying core information and communication (ICT) components such as semiconductors and also in the area of contract manufacturing which has been a huge growth area in the ICT global value chain (GVC) in China but remains largely dominated by Taiwanese companies.