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9 - The Diffusion of Foreign Innovation to Africa

The Role of Trade, FDI and Diasporas

from Part II - The Diffusion of Foreign Innovation into Africa

Published online by Cambridge University Press:  27 November 2020

Xiaolan Fu
Xiaolan Fu
Affiliation:
University of Oxford
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Summary

Foreign knowledge and technology enhance the technological capability of local firms. Foreign direct investment (FDI) and Multinational enterprises (MNEs) are key channels through which foreign knowledge flows and is transferred. This chapter reviews different types of foreign knowledge sources and the factors that ensure success in the adaption of foreign know-how to the local context. The results show that formal firms tend to have higher local technological capability are more likely to adopt and adapt foreign knowledge and technologies. Interaction with foreign firms through imports and collaboration are important sources of knowledge. The managerial localisation strategies in Chinese firms is also identified in our case study to offer an essential learning potential for local firms.

Keywords

TradeMNEsFDIknowledge transferinnovationAfrica
Type
Chapter
Information
Innovation under the Radar
The Nature and Sources of Innovation in Africa
 , pp. 217 - 239
Publisher: Cambridge University Press
Print publication year: 2020

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