We identify how barriers to absorptive capacity limit success in integrating external technology by firms in emerging markets. By comparing a failure and a success case, we refine previous barriers to absorptive capacity and classify them into internal (managerial biases and weak social...

China has actively implemented an industrial policy during the last two decades. However, despite important progress, the overall result is rather disappointing. Should China continue to pursue industrial policy? Should China focus instead on developing successful globally competitive firms...