Out of passivity: potential role of OFDI in IFDI-based learning trajectory The MIT Faculty has made this article openly available. Please share how this access benefits you. Your story matters. Citation Nam, K.-M., and X. Li. “Out of Passivity: Potential Role of OFDI in IFDI-Based Learning Trajectory.” Industrial and Corporate Change 22, no. 3 (September 10, 2012): 711–743. As Published http://dx.doi.org/10.1093/icc/dts031 Publisher Oxford University Press Version Author's final manuscript Citable link http://hdl.handle.net/1721.1/89472 Terms of Use Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. For: ICC Version: May 9, 2012 OUT OF PASSIVITY Potential Role of OFDI in IFDI-based Learning Trajectory Kyung-Min Nama,* and Xin Lib a Joint Program on the Science and Policy of Global Change, Massachusetts Institute of Technology, Cambridge, USA b Department of Urban Studies and Planning, Massachusetts Institute of Technology, Cambridge, USA * Corresponding author at: Address: 77 Massachusetts Ave. Room #E19-429C, Cambridge, MA 02139, USA Tel: (+1) 617-324-6685; Fax: (+1) 617-253-9845; Email:
[email protected] Abstract This study discusses how outward foreign direct investment (FDI) can complement the inward FDI-based technological capability-building process, through an analysis of the Shanghai Automotive Industry Corporation case. When a firm is upgrading its technological capability, outward FDI can allow learners to have access to human-embedded skills and knowledge and other intellectual assets that are hardly accessible through the inward globalization strategy.