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Approaching the technological innovation frontier: evidence from Chinese SOEs

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  • Xudong Gao

Abstract

This paper studies how large State-owned enterprises (SOEs) in China are approaching the technological innovation frontier and contributes to the literature on technological catching up and leapfrogging by identifying three models or strategies of approaching the innovation frontier. In addition to the well-recognised technology transfer based strategy, pursuing emerging technologies and reinventing mature technology could also be effective, with reinventing mature technology as the most important strategy. The paper also finds that strong internal R&D capability, rather than manufacturing capability as suggested by the extant literature, is the basis of all three models. This also implies that making big organisational transformations such as changing a technology transfer centred R&D function to a proprietary technology development centred R&D function, changing a manufacturing centred culture to an innovation centred culture, and reshaping the innovation network, is an important precondition to approach the innovation frontier.

Suggested Citation

  • Xudong Gao, 2019. "Approaching the technological innovation frontier: evidence from Chinese SOEs," Industry and Innovation, Taylor & Francis Journals, vol. 26(1), pages 100-120, January.
    • Handle: RePEc:taf:indinn:v:26:y:2019:i:1:p:100-120
    DOI: 10.1080/13662716.2017.1415134
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    Cited by:

    1. Lee, Jeoung Yul & Xiao, Shufeng(Simon) & Choi, Byungchul, 2021. "Unpacking the drivers of emerging market firms’ international joint venture formation: The interplay between technological innovation strategies and home- and host-institutional pressures," Journal of Business Research, Elsevier, vol. 134(C), pages 378-392.
    2. Yang Gao, 2022. "The Belt and Road Initiative and cascading innovation in China’s domestic railway ecosystem," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 236-258, June.
    3. Hui Wang & Anyin Jiang & Fayyaz Ahmad & Nabila Abid & Abbas Ali Chandio, 2024. "Attribute imbalances and innovation implementation based on grounded theory: A case of Chinese enterprises in Gansu Province," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 407-423, February.

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