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The long march to catch-up: A history-friendly model of China’s mobile communications industry

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  • Li, Daitian
  • Capone, Gianluca
  • Malerba, Franco

Abstract

This paper develops a history-friendly model of the process of catch-up by Chinese firms in the mobile communications industry. It aims to explain how the sectoral environment in terms of segmented markets and generational technological change facilitated the catch-up of domestic firms with respect to foreign multinationals. Segmented markets provided a nurturing environment in peripheral markets for the survival of domestic firms starting with low level capabilities in their infant stage. Generational technological change opened windows of opportunities for domestic firms to catch-up with foreign multinationals in new product segments. Segmented markets and generational technological change allowed domestic firms to leverage their initial advantages in peripheral markets to catch-up in core markets. Counterfactual simulations highlight that the process of catch-up was facilitated by relatedness across technological generations. This paper contributes to the literature on catch-up and industry evolution by illustrating the role of technological change and market regimes in the process of catching-up.

Suggested Citation

  • Li, Daitian & Capone, Gianluca & Malerba, Franco, 2019. "The long march to catch-up: A history-friendly model of China’s mobile communications industry," Research Policy, Elsevier, vol. 48(3), pages 649-664.
    • Handle: RePEc:eee:respol:v:48:y:2019:i:3:p:649-664
    DOI: 10.1016/j.respol.2018.10.019
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    More about this item

    Keywords

    Catch-up; Industry evolution; Mobile communications; Market regime; Technological change;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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