Multinational enterprise policies towards international intra-firm technology transfer: The case of Japanese manufacturing firms in Asia

Abstract

In this paper, we examine Japanese manufacturing firms’policies towards intra-firm technology transfer to subsidiaries located in 10 major countries in Asia. In contrast to other research on the topic, this paper is based on a study ofparent firms and thus examines technology transfer policies more directly. The aims of the paper are to explain what Japanese parent firms understand by technology transfer, and to assess the policy implications of the study. The findings indicate that Japanese parent companies have coherent, systematic and nuanced policies on technology transfer to subsidiaries in developing countries. Three distinct categories of technology (“production/supply chain knowledge”; “human resources systems” and “technology for innovation”) are recognised by firms and policies exist for each category, including whether it will be transferred, the extent of the transfer—and when.