Tapping into Western Technologies by Chinese Multinational Enterprises: Geely purchase of Volvo Cars and Huawei hiring of Ericsson employees in Sweden

Book chapter, 2015

This chapter focuses on how firms from emerging markets can access, and tap into, relevant external knowledge for innovation in Western countries, and thereby stimulate flows within new innovation spaces across countries.. This chapter focuses on China and Sweden, and more specifically on companies in the automobile and telecommunication industries. Chinese companies are increasingly moving abroad to access both advanced technologies and new markets. The chapter presents two case studies of Chinese firms moving into Sweden, including Geely’s purchase of Volvo Car Corporation in the automotive industry and Huawei’s hiring of Ericsson’s previous employees in the telecommunication industry. The cases represent two mechanisms for accessing scientific and technological resource, namely foreign acquisition and employment of key individuals from competitors through the establishment of R&D labs.