Perspectives to Independent Innovation in Chinese Automobile
Companies

Abstract: The development of Chinese automobile industry can be divided into four stages: overall
technology importation, closed development, multi-development, and innovative development. It is not
until the fourth stage that the independent innovation capability of Chinese automobile enterprises
begins to emerge. Through the analysis of Chinese automobile manufacturing enterprises, this paper
proposes that the so-called “Market for Technology” strategy on which Chinese enterprises try to rely to
introduce and absorb advanced technology by establishing joint-ventures with foreign capital enterprises
is unsuccessful. In the meanwhile, it suggests that Chinese automobile manufacturing enterprises should
adopt an independent innovation model based on resources integration. On the basis of internal
resources integration, Chinese enterprises should use “internalization” and “exploitation” approaches to
attract external resources and thereby foster their own core competence, and develop strategic alliances
based on resources integration as the way to realize this independent innovation model.
Key words Chinese automobile industry, independent innovation, market for technology, resources
integration