The Technology Gap and the Growth of the Firm: A Case Study of China's Mobile-phone Handset Industry

Koichiro Kimura

No 214, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: We have examined the way in which local Chinese firms confronted with atechnology gap have achieved growth, using the Chinese handset industry as acase study. Chinese local firms have lacked technology, and have therefore turnedto outside firms for development, design, and manufacturing, while theythemselves have focused on sales and marketing, using their advantage offamiliarity with the Chinese market. Consequently, by establishing a growthcondition in which their selection of boundaries counterbalances the technologygap they have been able to expand their market share in comparison with foreignfirms.

Keywords: Technology gap; Boundaries of the firm; Mobile-phone handset industry; China; Telephone (search for similar items in EconPapers)
JEL-codes: D23 F23 O12 (search for similar items in EconPapers)
Date: 2009-08-01
New Economics Papers: this item is included in nep-cna and nep-tra
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 214. 2009-08-01

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