Innovation and Leapfrogging in the Chinese Automobile Industry : Examples From Geely, BYD, and Shifeng

History provides numerous examples of incumbent market leaders being leapfrogged by newcomers that have exploited the opportunities offered by new technologies. In light of the growing number of ecological threats linked to the use of the internal combustion engine, can Chinese auto manufacturers, which are newcomers to the industry, beat out the established Japanese, European, and North American automakers in the race to produce a less environmentally damaging form of transport? Three case studies from the Chinese automobile industry reveal the different ways in which this leapfrogging might take place and highlight the impact that such developments might have on automobile manufacturers in Japan and the West, both for conventional and electric vehicles.