PUBLICATIONS & REPORTS

Contents Introduction

This paper investigates the evolution of ‘inter-firm’ technology transfer in the Thai automobile industry, which has gradually been integrated into global production network of some specific automotive models (one-ton pickups). This paper discusses the linkage between the role of automobile assemblers in transferring technology and the way their strategic changes bring about heightened demands on the technological capacity of suppliers and the contents of technology transfer. With higher competition at the global level, local suppliers are required to improve their technical and managerial skills, especially in the area of ‘product engineering’ capability. The authors examine the ways local firms have adapted to these changes in their environments, as well as the ways they utilize inter-firm relationship with automobile assemblers as a means to improve their own technological capabilities. The dynamic process of capability formation in local parts firms, through intensive efforts and learning inducements brought about by inter-firm relationships, are also discussed.