Papers in Innovation Studies, CIRCLE, Center for Innovation, Research and Competences in the Learning Economy, Lund University
Path-following or Leapfrogging in Catching-up: theCase of Chinese Telecommunication Equipment Industry
Abstract: In this paper, by reviewing the development of
telecommunication equipment industry from fixed phone switches to later 3G,
TD-SCDMA, we conclude that the degree of matching between existing foreign
products with Chinese market is the primary incentive for Chinese companies
to catch-up. The possibility to redesign the existing foreign product to
match the market needs in China leads to further opportunity to catch-up.
The accessibility of knowledge through government support, alliance with
foreign companies or R&D work shapes the capability of Chinese companies to
catch-up. The government support is important but not dominated.
Leapfrogging strategy will meet more tough problems than path-following.
Government plays a more important role in the leapfrogging than the
path-following catching-up process. Open to the world and encouraging the
collaboration and alliance activity can give companies in the developing
countries more opportunity to access the latest knowledge. In the dynamic
and advanced industry, FDI can be a very important factor for the
technology transfer and catching-up.
Keywords: innovation; catching-up and telecommunication equipment industry; (follow links to similar papers)
JEL-Codes: O30; (follow links to similar papers)
36 pages, June 1, 2007
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