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

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  • Kimura, Koichiro
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    Abstract

    We have examined the way in which local Chinese firms confronted with a technology gap have achieved growth, using the Chinese handset industry as a case study. Chinese local firms have lacked technology, and have therefore turned to outside firms for development, design, and manufacturing, while they themselves have focused on sales and marketing, using their advantage of familiarity with the Chinese market. Consequently, by establishing a growth condition in which their selection of boundaries counterbalances the technology gap they have been able to expand their market share in comparison with foreign firms.

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    File URL: http://ir.ide.go.jp/dspace/bitstream/2344/859/1/214.pdf
    File Function: First version, 2009
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    Bibliographic Info

    Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 214.

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    Date of creation: Aug 2009
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    Publication status: Published in IDE Discussion Paper. No. 214. 2009. 08
    Handle: RePEc:jet:dpaper:dpaper214

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    Related research

    Keywords: Technology gap; Boundaries of the firm; Mobile-phone handset industry; China; Telephone;

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    1. Sourafel Girma, 2005. "Absorptive Capacity and Productivity Spillovers from FDI: A Threshold Regression Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 67(3), pages 281-306, 06.
    2. Imai, Ken'ichi & Shiu, Jingming, 2007. "A Divergent Path of Industrial Upgrading: Emergence and Evolution of the Mobile Handset Industry in China," IDE Discussion Papers 125, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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