Indigenous Technological Capabilities, Emerging Market Firms and the Aerospace Industry

Steven Michael McGuire, Nazrul Islam

Research output: Contribution to journalArticlepeer-review

12 Citations (SciVal)

Abstract

While emerging market economies have developed significant technological capabilities and increased their share of global value-added in aerospace, they have done so largely through utilising foreign direct investment (FDI) and offset arrangements to enter supply chains that remain dominated by European and American firms. The paper examines whether emerging markets are developing indigenous technological capability in aerospace technologies. Drawing on patent data from the Thomson Innovation database, the study seeks to understand whether anchor tenant capability is indeed forming in emerging markets. A tech-mining method is applied. The study suggests that China, in particular, has dramatically increased its innovative capacity in the area. However, the data also demonstrate the significant advantages enjoyed by incumbent firms from Europe and the USA, suggesting that the complexity of aircraft R&D remains a formidable barrier that can only be surmounted by determined government policies and anchor firms equipped with substantial innovation capabilities.
Original languageEnglish
Pages (from-to)739-758
JournalTechnology Analysis and Strategic Management
Volume27
Issue number7
DOIs
Publication statusPublished - 19 Aug 2014

Keywords

  • indigenous innovation
  • aerospace industry
  • emerging markets
  • tech mining
  • China
  • Russia

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