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Platforms, Innovation and Capability Development in the Chinese Domestic Market

Author

Listed:
  • John Humphrey

    (University of Sussex)

  • Ke Ding

    (Institute of Developing Economies (IDE), Japan External Trade Organization (JETRO))

  • Mai Fujita

    (Institute of Developing Economies (IDE), Japan External Trade Organization (JETRO))

  • Shiro Hioki

    (Tohoku University)

  • Koichiro Kimura

    (Institute of Developing Economies (IDE), Japan External Trade Organization (JETRO))

Abstract

We compare the evolution of the mobile phone and electric two-wheeler sectors in China. In the first decade of the twenty-first century, Chinese firms have used technologies bundled into platforms to meet the needs of low-income Chinese consumers. The possibilities of downstream innovation opened up by platforms were not pursued. This paper shows how changes in Chinese consumer demand led to pressures for greater product differentiation and innovation, and how businesses responded to this through investing in research and development, developing their value chain linkages and mobilising local and national innovation resources. We highlight sectoral differences, particularly with respect to the speed of technological change in the mobile phone industry and its consequences for value chain linkages and inter-firm learning.

Suggested Citation

  • John Humphrey & Ke Ding & Mai Fujita & Shiro Hioki & Koichiro Kimura, 2018. "Platforms, Innovation and Capability Development in the Chinese Domestic Market," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 408-423, July.
    • Handle: RePEc:pal:eurjdr:v:30:y:2018:i:3:d:10.1057_s41287-018-0145-4
    DOI: 10.1057/s41287-018-0145-4
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    References listed on IDEAS

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    2. Rikap, Cecilia & Flacher, David, 2020. "Who collects intellectual rents from knowledge and innovation hubs? questioning the sustainability of the singapore model," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 59-73.
    3. Zicheng Ma & Liang Wang & Xin Zheng & Jianqi Zhang, 2022. "National Innovation Systems and Global Value Chain Participation: The Role of Entrepreneurship," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(2), pages 897-920, April.
    4. Rasmus Lema & Roberta Rabellotti & Padmashree Gehl Sampath, 2018. "Innovation Trajectories in Developing Countries: Co-evolution of Global Value Chains and Innovation Systems," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(3), pages 345-363, July.

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