Foreign direct investment with Chinese characteristics: A middle path between Ownership-Location-Internalization model and Linkage-Leverage-Learning model

The majority of multinational enterprises(MNEs) traditionally originate from developed countries.In the last ten years,however,there has been dramatic growth in foreign direct investment(FDI) from China.It is a comparatively new phenomenon that challenges the classic FDI theories.In this paper,we review the pros and cons of two important theories,known as the Ownership-Location-Internalization(OLI) model and Linkage-Leverage-Learning(LLL) model,and use the statistical data and company case studies from China to test the plausibility of these two models.We believe that neither of them suits totally: the OLI model is quite useful for understanding FDI from China to developing economies,while the LLL model is more powerful for explaining the FDI to developed economies.We argue that the companies from China attain a very advantageous position as intermediates in the global economy.They may catch up with the first movers if they integrate OLI-led and LLL-led FDI within one firm.This combination can bring together the most advanced knowledge acquired in developed economies with the knowledge about adaptation needs and the needs for cost reduction in production as expressed in developing economies.It may also accelerate the knowledge transfer globally.We thus fill a gap in research into the geographical pattern of Chinese FDI and offer a deeper understanding of the internationalization of Chinese MNEs and revolving knowledge transfer.     

Heat flow anomalies in the Gulf of Cadiz and off Cape San Vincente,Portugal

Heat flow anomalies provide critical information in active tectonic environments. The Gulf of Cadiz and adjacent areas are affected by the plate convergence between Africa and Europe, causing widespread deformation and faulting. Active thrust faults cause lateral movement and advection of heat that produces systematic variations in surface heat flow. In December 2003 new heat flow data were collected during the research vessel Sonne cruise SO175 in the Gulf of Cadiz over two sites of recent focused research activity: (i) the Gulf of Cadiz sedimentary prism and (ii) the Marques de Pombal escarpment. Both features have also been discussed as potential source areas of the Great Lisbon earthquake and tsunami of 1755. Background heat flow at the eastern terminus of the Horseshoe abyssal plain is about 52–59 mW/m². Over the Gulf of Cadiz prism, heat flow decreases from ∼57 mW/m² to unusually low values of 45 mW/m² roughly 120 km eastward. Such low values and the heat flow trend are typical for active thrusting, supporting the idea of an east-dipping thrust fault. Slip rates are 10 ± 5 mm per year, assuming that the fault dips at 2°. A fault dipping at 5°, however, would result into slip rates of 1.5–5 mm per year, suggesting that subduction has largely ceased. Based on seismic data, the Marques de Pombal fault is interpreted as part of an active fault system located ∼100 km westward of Cape San Vincente. Heat flow over the fault is affected by refraction of heat caused by the 1 km high escarpment. Thermal models suggest that the slip rate along the fault must either be small or shear stresses acting on the fault are rather high. With respect to other fault zones, however, it is reasonable to assume that the fault's slip rate is small.     

53Mn and 60Fe in iron meteorites—New data,model calculations

We measured specific activities of the long‐lived cosmogenic radionuclides ⁶⁰Fe in 28 iron meteorites and ⁵³Mn in 41 iron meteorites. Accelerator mass spectrometry was applied at the 14 MV Heavy Ion Accelerator Facility at ANU Canberra for all samples except for two which were measured at the Maier‐Leibnitz Laboratory, Munich. For the large iron meteorite Twannberg (IIG), we measured six samples for ⁵³Mn. This work doubles the number of existing individual ⁶⁰Fe data and quadruples the number of iron meteorites studied for ⁶⁰Fe. We also significantly extended the entire ⁵³Mn database for iron meteorites. The ⁵³Mn data for the iron meteorite Twannberg vary by more than a factor of 30, indicating a significant shielding dependency. In addition, we performed new model calculations for the production of ⁶⁰Fe and ⁵³Mn in iron meteorites. While the new model is based on the same particle spectra as the earlier model, we no longer use experimental cross sections but instead use cross sections that were calculated using the latest version of the nuclear model code INCL. The new model predictions differ substantially from results obtained with the previous model. Predictions for the ⁶⁰Fe activity concentrations are about a factor of 2 higher, for ⁵³Mn, they are ~30% lower, compared to the earlier model, which gives now a better agreement with the experimental data.     

Matrix-independent Fe isotope ratio determination in silicates using UV femtosecond laser ablation

UV femtosecond laser ablation coupled to MC-ICP-MS provides a promising in situ tool to investigate elemental and isotope ratios by non-matrix-matched calibration. In this study, we investigate Fe isotope composition in siliceous matrices including biotite, hornblende, garnet, fayalite and forsterite (San Carlos Olivine), and an oceanic Fe–Mn crust using the iron reference material IRMM-014 for calibration. To test the accuracy of the laser ablation data, Fe isotope compositions were obtained independently by solution ICP-MS after chromatographic separation of Fe. Sample materials with low Cr content, i.e. biotite, hornblende, fayalite and the Fe–Mn crust, reveal δ^56/54Fe and δ^57/54Fe values that agree with those from solution ICP-MS data within the measured precision. For high Cr concentration (⁵⁴Cr/⁵⁴Fe >0.0001), i.e. in the garnet and forsterite sample, δ^56/54Fe and δ^57/54Fe values were derived from ⁵⁷Fe/⁵⁶Fe ratios as correction of the isobaric interference of ⁵⁴Cr on ⁵⁴Fe is unsatisfactory. This approach provides accurate results for both minerals. Moreover, the garnet crystal exhibits isotopic zonation with differences of 0.3‰ in δ^56/54Fe showing that substantial heterogeneities exist in high-temperature metamorphic minerals. Multiple analyses of homogeneous sample materials reveal a repeatability of 0.1‰ (2 SD) for δ^56/54Fe and 0.2‰ (2 SD) for δ^57/54Fe, respectively. This study adds to the observations of Horn et al. (2006) who have shown that the determination of Fe isotope ratios in various matrices including iron alloys, iron oxides and hydroxides, iron sulfide and iron carbonates can be performed with high accuracy and precision at high spatial resolution using UV femtosecond laser ablation ICP-MS. These results demonstrate that femtosecond laser ablation ICP-MS is a largely matrix-independent method, which provides a substantial advantage over commonly employed nanosecond laser ablation systems.     

Knowledge absorption of optical technology companies in Shanghai, Pudong: Successes, barriers and structural impediments

Knowledge absorption theories argue that technologically less advanced companies (latecomer firms) can substantially upgrade their knowledge base through active knowledge absorption. These theories view knowledge absorption as a stepwise process which includes a linkage phase, a leverage phase and a learning phase (LLL concept). Case studies in Taiwan and Korea have shown that latecomer firms can indeed follow this approach and catch-up technologically with advanced firms. This paper aims to discuss the relevance of the LLL concept in China using the example of Optical Technology (OT). It reveals that the concept is not universally applicable. In the case of China, the ownership of companies determines successes and failures of strategies for increasing knowledge absorption. Private firms face substantial difficulties in establishing the necessary linkages; the upgrading of foreign-invested enterprises (FIEs) is controlled by their parent companies. This result has implications for theoretical concepts of learning and innovation in China, as well as for policy.     

Micro-scale tracing of Fe and Si isotope signatures in banded iron formation using femtosecond laser ablation

We have detected micrometre-scale differences in Fe and Si stable isotope ratios between coexisting minerals and between layers of banded iron formation (BIF) using an UV femtosecond laser ablation system connected to a MC-ICP-MS. In the magnetite–carbonate–chert BIF from the Archean Old Wanderer Formation in the Shurugwi Greenstone Belt (Zimbabwe), magnetite shows neither intra- nor inter-layer trends giving overall uniform δ⁵⁶Fe values of 0.9‰, but exhibits intra-crystal zonation. Bulk iron carbonates are also relatively uniform at near-zero values, however, their individual δ⁵⁶Fe value is highly composition-dependent: both siderite and ankerite and mixtures between both are present, and δ⁵⁶Fe end member values are 0.4‰ for siderite and −0.7‰ for ankerite. The data suggest either an early diagenetic origin of magnetite and iron carbonates by the reaction of organic matter with ferric oxyhydroxides catalysed by Fe(III)-reducing bacteria; or more likely an abiotic reaction of organic carbon and Fe(III) during low-grade metamorphism. Si isotope composition of the Old Wanderer BIF also shows significant variations with δ³⁰Si values that range between −1.0‰ and −2.6‰ for bulk layers. These isotope compositions suggest rapid precipitation of the silicate phases from hydrothermal-rich waters. Interestingly, Fe and Si isotope compositions of bulk layers are covariant and are interpreted as largely primary signatures. Moreover, the changes of Fe and Si isotope signatures between bulk layers directly reflect the upwelling dynamics of hydrothermal-rich water which govern the rates of Fe and Si precipitation and therefore also the development of layering. During periods of low hydrothermal activity, precipitation of only small amounts of ferric oxyhydroxide was followed by complete reduction with organic carbon during diagenesis resulting in carbonate–chert layers. During periods of intensive hydrothermal activity, precipitation rates of ferric oxyhydroxide were high, and subsequent diagenesis triggered only partial reduction, forming magnetite–carbonate–chert layers. We are confident that our micro-analytical technique is able to detect both the solute flux history into the sedimentary BIF precursor, and the BIF’s diagenetic history from the comparison between coexisting minerals and their predicted fractionation factors.     

Cosmogenic effects on Li/Li, B/B, and W/W in CAIs from carbonaceous chondrites

This study focuses on cosmogenic effects on lithium, boron, and tungsten isotopes in CAIs from carbonaceous chondrites. The results for lithium isotopes have been used to properly correct experimental data obtained by Chaussidon et al. (2006a) for Allende CAI 3529-41 for cosmogenic contributions. After proper correction, the new inferred ratios slightly but systematically differ from the original ones, indicating that the original study slightly overestimated the cosmogenic corrections. A statistical interpretation of the data indicates that there is a non-linear correlation between ⁷Li/⁶Li and ⁹Be/⁶Li that might be interpreted as a disturbed isochron. For boron isotopes, the data obtained here confirm that cosmogenic corrections on the ¹⁰Be-¹⁰B dating system are indeed very minor and can in most cases be neglected. However, a statistical interpretation of the data demonstrates that the type of the fitting procedure used can significantly change the results. It is demonstrated that a fitting procedure using the uncertainties as weights gives a slope about 50% shallower compared to the slope obtained using a non-weighted fitting procedure (for the same data). Such a difference can be wrongly interpreted as an age difference of about one half-life. The modeled results for tungsten isotopes clearly demonstrate that cosmic-ray effects might be of importance for samples having high Ta/W ratios due to thermal neutron capture on ¹⁸¹Ta to form ¹⁸²W. This effect does not increase the scatter of the data around the isochron but increases the slope of the isochron and therefore gives too old formation ages for the studied CAIs. Consequently, a proper handling of cosmic-ray induced shifts is necessary for high precision ¹⁸²Hf-¹⁸²W dating studies.     

Network configurations and R&D activities of the ICT industry in Suzhou municipality, China

This paper analyzes the network structure and R&D activities of the information and communication technology (ICT) industry in Suzhou municipality, known previously for its local state-directed Sunan model of development. Suzhou, however, has been undergoing dramatic restructuring to remake itself into a globalizing production center. We highlight the significance of the Chinese state and local/regional assets in shaping the trajectories of globalization and regional development, and the increasing importance of domestic markets and regional clusters/agglomeration for foreign ventures. We have found that Suzhou’s development path, heavily dependent on external forces, has made Suzhou a TNC (transnational corporation) satellite district. We also find that the ICT industry in Suzhou has a dual-structure, segmented between foreign-invested enterprises (FIEs) and domestic firms. TNCs tend to network among themselves and their interfirm networks are increasingly domestic and regionally embedded in the Yangtze River Delta, while the linkages between TNCs and local firms are weak. We argue that there is a series of technological, structural, spatial, and institutional “mismatches” that limits the establishment of “global pipelines” of knowledge exchange. We hold that the nature of global-local networks is contingent upon regional endogenous capacities and the specific ways in which global capital interacts with local institutions. Therefore, perspectives on TNCs’ local embeddedness must be positioned in their regional/external networks. We also analyze the constraints placed on Suzhou’s development into an innovative city and promote the integration of global and local/regional assets through development of indigenous capacities.