Abstract It is the newest trend to form the technological alliance in automobile industry in China. This paper focuses on the direct and indirect effect of technological alliance on the innovation performance of automobile industry in China. By analyzing whether these prerequisites are met and how some of them are violated with the sample data, it is concluded that technological alliance achieves net positive effect and points out that the leader in technological alliance gain positive effect of indirect influence from the followers while the members of the technical alliance gain net positive effect from both positive direct effect and negative indirect effect of the alliance.
2012, Vol. 1 
