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Institutional-Technological Co-Evolution Explains the Formation of China-Type Manufacturing: A Case Study of BYD

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  • Cao, Fang

Abstract

This paper takes BYD as a case study to explore the formation mechanism of China-type manufacturing from the perspective of institutional-technological co-evolution. By analyzing the interaction between institutional environment and technological innovation at different development stages of BYD, it reveals how institutional-technological co-evolution drives the emergence and development of China-type manufacturing. The research finds that changes in the institutional environment provide opportunities and constraints for technological innovation, while technological innovation, in turn, influences the evolution of institutions. The two interact to jointly shape the unique model of China-type manufacturing. At the operational level, China-type manufacturing manifests in core dimensions such as the depth of vertical integration, the ability to spill over standards, the speed of policy-technological dual circulation, and the unit performance/cost ratio. BYD achieved a transformative leap from innovation follower to innovation leader through the resonance of its LPSS capability evolution curve and institutional gene chain.

Suggested Citation

  • Cao, Fang, 2025. "Institutional-Technological Co-Evolution Explains the Formation of China-Type Manufacturing: A Case Study of BYD," GBP Proceedings Series, Scientific Open Access Publishing, vol. 15, pages 81-90.
    • Handle: RePEc:axf:gbppsa:v:15:y:2025:i::p:81-90
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