In the paper "The role of foreign MNEs in China's twin transition: a study on the organization of green and digital innovation processes", Chris Brück addresses the research question of how foreign multinational enterprises (MNEs) develop green, digital (especially artificial intelligence - AI) and twin (green and digital) innovations in China and how they are involved in state-led innovation processes.
In order to answer the research question, 11 interviews were conducted with German MNEs with R&D sites in China.
The analysis shows that the emergence of twin innovations mainly originates from environmental technology companies, as AI optimizes their products and processes. Although digital companies also use AI across the board in internal company processes, direct implications for sustainability or environmental protection play a secondary role and are rather a positive side effect that frequently occurs. Innovation processes are primarily organized in large-scale cross-company projects of the local government by bundling various actors to use AI and environmental technology for specific applications. Chinese digital companies are almost exclusively responsible for the development of AI. German companies are either (I) actively involved in innovation processes, (II) prefer not to be involved for intrinsic motives and remain largely autonomous or (III) are actively excluded from innovation processes. The exclusion of some foreign companies from certain fields of technology (especially AI) leads to decoupling processes. Due to regional differences and processes, companies that have invested or want to invest in China should be aware of local and regional factors and their role in the innovation system. Integration into certain large-scale projects and cluster organizations has a significant impact on the development of green, digital, and twin innovations in China.
Brueck, C. (2024): The role of foreign MNEs in China’s twin transition: a study on the organization of green and digital innovation processes. Competitiveness Review. DOI: 10.1108/CR-08-2023-0207
