Learning by innovating: lessons from China's digital video player industry

Abstract

Purpose

The purpose of this paper is to explore the strategy for latecomers in large developing countries under globalization. The relationship between innovation and learning is deeply studied.

Design/methodology/approach

The paper formulates an in‐depth case study on the digital video player industry through consideration of government documents, reports, and research papers; intensive interviews; and questionnaire study.

Findings

The firms in developing countries might be able to innovate before they can match the firms in advanced countries in technological capabilities, and innovation is the most effective way of learning. The firms can achieve competitive advantage owing to the effect of the national value network, the nature of architectural technology, and the relationships between them in product development. The national market should be deliberately taken as a strategic asset for the technological learning and latecomers should learn how to exploit the advantage of globalization.

Originality/value

The paper tries to understand how firms in developing countries conduct learning by innovating to build their competitive advantages.

Citation

Lu, F. and Mu, L. (2011), "Learning by innovating: lessons from China's digital video player industry", Journal of Science and Technology Policy in China, Vol. 2 No. 1, pp. 27-57. https://doi.org/10.1108/17585521111107889