Knowledge diffusion, market segmentation and technological catch-up: The case of the telecommunication industry in China |
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| Authors: | Qing Mu |
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| Institution: | a Shanghai University of Finance and Economics, Shanghai, China
b Seoul National University, Department of Economics, South Korea |
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| Abstract: | This paper examines the growth of technological capability in the telecommunication industry in China. We apply a modified version of Lee and Lim's Lee, K., Lim, C., 2001. The technological regimes, catch-up and leapfrogging: findings from the Korean industries. Research Policy, vol. 30.] model of technological learning and catching-up. Using the three cases of the Shanghai Bell, the CIT-led R&D consortium, and indigenous companies such as Huawei, we analyze how the catching-up in the telecommunication industry occurred. We find that the important factors in the catch-up are the strategy of “trading market for technology,” the knowledge diffusion from Shanghai Bell both to the R&D consortium and to Huawei, and industrial promotion by the government. As a condition for successful catch-up, the paper points out that the technological regime of the telephone switches is featured by a more predictable technological trajectory and a lower cumulativeness. These conditions and strategies helped the Chinese firms to achieve a stage-skipping catch-up, namely, by skipping the stage of analogue electronic switches to jump to digital electronic switches. |
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| Keywords: | Technological regime China Knowledge diffusion Market segmentation Technological catch-up |
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