Path-following or Leapfrogging in Catching-up: theCase of Chinese Telecommunication Equipment Industry

Liu Xielin
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Liu Xielin: School of Management, Graduate University Chinese Academy of Science, Postal: Beijing, China

No 2007/1, Papers in Innovation Studies from Lund University, CIRCLE - Centre for Innovation Research

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 (search for similar items in EconPapers)
JEL-codes: O30 (search for similar items in EconPapers)
Pages: 36 pages
Date: 2007-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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