Discussion Papers

No.699 Overseas expansion and technological capabilities: The case of Chinese electronics firms

by Koichiro Kimura

March 2018


We analyze the formation of technological capabilities of major Chinese home appliance and consumer electronics manufacturers in comparison with telecommunication equipment manufacturers and hardware startups in the electronics industry. To achieve this, we focus on the external business environment of major home appliance and consumer electronics manufacturers, including the technological gaps between foreign and Chinese firms in the same industry, the possibility of cross-border mergers and acquisitions (M&A) transactions, and the barriers to starting a business and to developing new products. Results suggest that there are a variety of ways to increase the technological capabilities of firms in emerging countries and that there may be an optimal way for it depending on a business environment.

Keywords:  technological capabilities, M&A, electronics industry, China

JEL classification:  F21, L68, O31

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