Techno-economic security aspects of transferring technology to China:the perspective of Danish companies

Danish companies are especially prevalent in China where they have found opportunities to exploit their niche position in a number of specialised product areas. As a result, their operations are often well advanced in terms of the levels of technology transferred and the extent of transfer. Transferring technology brings with it risks as well as benefits. Its absorption and dissemination can, in the longer term, bring about new competitors unless measures are taken to prevent leakage of know-how or the technology supplier can stay ahead of the technological race. This paper draws on data from three Danish case companies that are transferring technology to China. The cases are examined within a framework that allows the identification of the companies’ motivations for transfer against their awareness of the techno-economic security issues. In this way it is possible to highlight the strategic and operational approaches that can be taken to obviate the risks involved.

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