Localisation strategies of firms in wind energy technology development

Radhika Perrot & Sergey Filippov

#2010-047

The paper looks at the localisation strategies of multinational companies in wind energy sector in the emerging countries of China and India. It seeks to explain why western multinationals are localising new manufacturing and R&D facilities in emerging economies such as China and India, and how local knowledge and capabilities are being increasingly integrated into global technology and manufacturing networks of multinationals. It explores the reasons behind the localisation of multinational companies that helps them gain strategic access to wind energy technological capabilities in emerging economies. It examines the case of the company Vestas in expanding wind energy cluster of Tianjin in China and Chennai in India. At the strategic level, it explains the importance of the role of local capabilities and skills in the global production networks of multinationals. At the policy level, the discussions leading from the case focuses on the concrete steps necessary to integrate technology and innovation more closely into development of sustainable energy markets in developing countries.

Key words: renewables, multinational companies, emerging economies

JEL codes: F23, L72, O32, Q20, Q42

UNU-MERIT Working Papers ISSN 1871-9872

  


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