China's Development Model: An Alternative Strategy for Technological Catch-Up (Xielin Lu)


The context in which Chinese firms and, as a nation, China is attempting to catch-up is fundamentally different that that facing earlier latecomers such as Japan and Korea. This paper contrasts these contexts and describes an alternative model of catch-up that can be discerned through an examination of the industries in which Chinese firms are competing successfully. The basic elements of Chinese catching up strategy are: market size, market-oriented innovation, global alliance and open innovation, spillover of FDI and role of government. The core capability of Chinese company is an integration capability of market knowledge, outsourcing and learning. The paper explained the new model of catch-up in ICT industry in China.

Working Paper