The focus of this study is automobile industry in China and Russia. Specifically I am looking at the state attempts to encourage technology development in the automobile sector. My goal is to look for variations in the overall policy environment created by the state with regard to technology enhancement in the automobile industry in China and Russia and particularly focus on policy implementations at the enterprise level by observing the way enterprises appropriate technology by using various sources of technology appropriation provided by the state policies.; I believe that this research is important because it reviews the literature on the role of the state in industrial development and introduces the concept of "technology appropriation." Technology appropriation lies in the heart of the companies' technological competitiveness and is based on the sources of technology made available to companies by the regulatory environment created by the state. Most importantly, this project offers analysis of the empirical data collected during a series of interviews in the domestic and foreign enterprises operating in both countries. This analysis attempts to lift the "curtain" over the companies' technology-oriented strategies and the way they take advantage of the existent state policies affecting the process of technology appropriation.
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