Technology transfer into China:: Preparing for a new era

Abstract

Currently, there are three forces creating a more favourable background for western multinational companies to do new business in China by transferring new technology. First, growing overcapacity means China requires not traditional turnkey factories, but instead, technology which leads to innovation and improvement. Second, a changing attitude by all levels of Chinese government to demanding state-of-the-art technology including software instead of previous generation technology, and to technology management and commercial implementation more. Third, intellectual property rights are becoming better respected.Arnoud De Meyer makes suggestions to best manage technology transfer into China, with this changed background. Based on six case studies and extensive desk and literature research, he makes proposals under three headings: creating a win–win situation, applying good basic principles of technology transfer to the Chinese case, and applying common sense to the management of intellectual property rights.