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The emergence of new technology enterprises in China: A study of endogenous capability building via restructuring

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  • Shulin Gu

Abstract

This article examines the emergence of a vital non‐state sector, consisting of New Technology Enterprises (NTEs) spun off from existing R&D institutions during the economic reforms in China. Most NTEs are engaged in computer and information technology. Based on an outline of the development of the NTEs, this article focuses on an analysis of a few critical aspects of the restructuring process through which the NTEs gained entry to a sphere of innovative economic activity. The analysis shows that, while the newly emerged NTEs have to have international levels of competitiveness, the restructuring process has been highly specific to the local society. The article concludes by stressing the critical importance of the organisational innovation of the economic actors and the creation of institutions to support creative economic activities, if developing countries are to cope with the pressing trends of rapid technological progress and economic globalisation.

Suggested Citation

  • Shulin Gu, 1996. "The emergence of new technology enterprises in China: A study of endogenous capability building via restructuring," Journal of Development Studies, Taylor & Francis Journals, vol. 32(4), pages 475-505.
    • Handle: RePEc:taf:jdevst:v:32:y:1996:i:4:p:475-505
    DOI: 10.1080/00220389608422425
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    Cited by:

    1. Ingo Liefner & Stefan Hennemann & Lu Xin, 2006. "Cooperation in the Innovation Process in Developing Countries: Empirical Evidence from Zhongguancun, Beijing," Environment and Planning A, , vol. 38(1), pages 111-130, January.
    2. Jici Wang & Jixian Wang, 1998. "An Analysis of New-Tech Agglomeration in Beijing: A New Industrial District in the Making?," Environment and Planning A, , vol. 30(4), pages 681-701, April.
    3. Greeven, M.J. & Xiaodong, Z., 2009. "Developing Innovative Competences in an Emerging Business System: New Private Enterprises in Hangzhou’s Software Industry," ERIM Report Series Research in Management ERS-2009-045-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    4. Yevgeny Kuznetsov, 2008. "Innovation Systems, Radical Transformation, Step-by-Step: India in Light of China," WIDER Working Paper Series RP2008-90, World Institute for Development Economic Research (UNU-WIDER).
    5. Yu Zhou, 2005. "The Making of an Innovative Region from a Centrally Planned Economy: Institutional Evolution in Zhongguancun Science Park in Beijing," Environment and Planning A, , vol. 37(6), pages 1113-1134, June.
    6. Marcus Conlé, 2011. "Tracing the Process of Property Rights Specification in China: The Case of New Technology Enterprises," Chapters, in: Werner Pascha & Cornelia Storz & Markus Taube (ed.), Institutional Variety in East Asia, chapter 3, Edward Elgar Publishing.
    7. Daniel Erian Armanios & Charles E. Eesley & Jizhen Li & Kathleen M. Eisenhardt, 2017. "How entrepreneurs leverage institutional intermediaries in emerging economies to acquire public resources," Strategic Management Journal, Wiley Blackwell, vol. 38(7), pages 1373-1390, July.
    8. Hennemann Stefan & Liefner Ingo, 2006. "Kooperations- und Innovationsverhalten von chinesischen Hochtechnologieunternehmen," ZFW – Advances in Economic Geography, De Gruyter, vol. 50(1), pages 58-71, October.
    9. Tan, Justin, 2006. "Growth of industry clusters and innovation: Lessons from Beijing Zhongguancun Science Park," Journal of Business Venturing, Elsevier, vol. 21(6), pages 827-850, November.
    10. Gu, Shulin, 1997. "China's National Innovation System Approach to Participating in Information Technology: The Innovative Recombination of Technological Capability," UNU-INTECH Discussion Paper Series 1997-01, United Nations University - INTECH.

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