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Plastic cars in China? The significance of production location over markets for technology competitiveness in the United States versus the People's Republic of China

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  • Fuchs, Erica R.H.
  • Field, Frank R.
  • Roth, Richard
  • Kirchain, Randolph E.

Abstract

This paper demonstrates the significance of location-specific differences in manufacturing characteristics and in consumer demand for technology competitiveness. It looks, in particular, at the economic viability of emerging polymer composite automobile body technologies if produced in the United States (U.S.) versus if produced in the People's Republic of China (P.R.C.) The results show that polymer composite bodies, when produced locally for the local market, are competitive for significantly fewer cars in the P.R.C. (7%) than in the U.S. (29%). Despite consumer demand characteristics in the P.R.C. being more favorable for composites, differences in production characteristics between the two locations dominate the overall effect. These results suggest that in cases such as automobile bodies where markets and manufacturing location are tightly coupled, firms may need to put as much emphasis on understanding the impact of local production differences on technology competitiveness as in understanding local markets.

Suggested Citation

  • Fuchs, Erica R.H. & Field, Frank R. & Roth, Richard & Kirchain, Randolph E., 2011. "Plastic cars in China? The significance of production location over markets for technology competitiveness in the United States versus the People's Republic of China," International Journal of Production Economics, Elsevier, vol. 132(1), pages 79-92, July.
    • Handle: RePEc:eee:proeco:v:132:y:2011:i:1:p:79-92
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    Cited by:

    1. Liao, Kun & Deng, Xiaodong & Marsillac, Erika, 2013. "Factors that influence Chinese automotive suppliers’ mass customization capabilities," International Journal of Production Economics, Elsevier, vol. 146(1), pages 25-36.
    2. Cotterman, Turner & Fuchs, Erica R.H. & Whitefoot, Kate S. & Combemale, Christophe, 2024. "The transition to electrified vehicles: Evaluating the labor demand of manufacturing conventional versus battery electric vehicle powertrains," Energy Policy, Elsevier, vol. 188(C).
    3. Yang, Chia-Hsuan & Nugent, Rebecca & Fuchs, Erica R.H., 2016. "Gains from others’ losses: Technology trajectories and the global division of firms," Research Policy, Elsevier, vol. 45(3), pages 724-745.
    4. Bonnin Roca, Jaime & O'Sullivan, Eoin, 2020. "Seeking coherence between barriers to manufacturing technology adoption and innovation policy," International Journal of Production Economics, Elsevier, vol. 230(C).
    5. Wu, Peng & Jin, Ying & Shi, Yongjiang & Shyu, Hawfeng, 2017. "The impact of carbon emission costs on manufacturers' production and location decision," International Journal of Production Economics, Elsevier, vol. 193(C), pages 193-206.
    6. Mahlia, T.M.I. & Tohno, S. & Tezuka, T., 2012. "A review on fuel economy test procedure for automobiles: Implementation possibilities in Malaysia and lessons for other countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(6), pages 4029-4046.
    7. Doblinger, Claudia & Surana, Kavita & Li, Deyu & Hultman, Nathan & Anadón, Laura Díaz, 2022. "How do global manufacturing shifts affect long-term clean energy innovation? A study of wind energy suppliers," Research Policy, Elsevier, vol. 51(7).
    8. Gregory Tassey, 2014. "Competing in Advanced Manufacturing: The Need for Improved Growth Models and Policies," Journal of Economic Perspectives, American Economic Association, vol. 28(1), pages 27-48, Winter.

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