Volume 2, Issue 2, April 2013, Page: 22-32
Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry
Hans W. Gottinger, STRATEC Munich Germany
Received: May 6, 2013;       Published: Jun. 10, 2013
DOI: 10.11648/j.ijber.20130202.12      View  2896      Downloads  199
Abstract
In this paper we trace the industry development of Chinese suppliers and competitors in the telecommunications industry.The observation period goes from the mid 1980s to about today.In the first stage we observe that Chinese startups targeted the basic need for infrastructural development in telecommunications in Western and rural China in supplying low cost telecommunications gear to those areas which were less lucrative for foreign vendors and joint ventures and were heavily encouraged by the Chinese national government in a sort of nurturing its own infant industry. This kind of asymmetic competition separated the startups from the established players in the Chinese market. We call it the separation stage. In the course of this stage the initiating’three horsemen’ underwent technological learning either through indigenous innovation or imitation of some sort,therefore gaining competitive strength and competing against foreigners on large scale projects in the Chinese market. This led to the convergence stage. When asymmetric competition turns symmetric we observe competitive convergence , in which each technology’s development is directed at expanding its appeal not only in its own home market but in its rival’s as well. While the Chinese companies with the implicit support of the Chinese government continued to gain market share against foreign competitors and as their technological learning advanced product quality at lower cost they expanded in actively seeking to bid successfully for telecommunications projects in developing and emerging economies where they gained further strength by competing on given product quality and lower prices. This is the globalization stage.
Keywords
Business History, Strategy, Technology (Innovation) Management, Industry Development, Globalization
To cite this article
Hans W. Gottinger, Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry, International Journal of Business and Economics Research. Vol. 2, No. 2, 2013, pp. 22-32. doi: 10.11648/j.ijber.20130202.12
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