andCatch-upinChineseTelecommunicationindustry.ppt

Innovation and Catch-up in Chinese Telecommunication industry Xielin LIU professor School of Management Graduate University of Chinese Academy of Science (CAS) liuxielin@ outline A review of theory of catch-up A new framework for understanding catch-up in China Catch-up in telecommunication industry of China conclusion Theory of catch-up Gershenkron (1962) argued that targeting rapidly growing and advanced technologies is the advantage of catch-up countries. Using a “window of opportunity” that may arise in the evolution of a technology system to catch-up with appropriate social, industrial and technology policies, a country may catch-up. Otherwise, it will continue to lag behind (Perez and Soete,1988) Theory of technological regime A new approach argues that the technological regime affects the nature and success of innovative activities of those firms trying to catch-up (Breschi, Malerba and Orsenigo, 2000 ). Technological opportunity, appropriabiity of innovations and cumulativeness of technical advance and the property of knowledge base. In the case of Korea, Lee and Lim(2001) argue that regimes, in which innovation is more predictable and frequent will give latecomers more opportunity to catch up; such as DRAM and automobile industries in Korea. In the opposite case, latecomers will have less opportunities to catch up; the PC and consumer electronics industries in Korea also illustrate this situation. Case of China China has make great economic achievement in the last twenty years. How to understand the catch-up process in China. Different background and approach for catch up: Japan and China in Japan, limited role of FDI, strong governmental role and social innovation. More shop-floor processing innovation. China: strong role of FDI important, transition economy, more alliance and outsourcing strategy. In the Western literature, Chinese companies are still copy cats rather than innovators. China is country with huge manufacturing capabilit