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The purpose of this paper is to examine evolutionary processes of sectoral systems of innovation in China's catch‐up situation.

History event analysis method is used. The data that inform this paper come primarily from interviews carried out as a part of case studies of the innovations of China's car industry as well as public sources.

Market catch‐up of China's self‐owned brand cars expanded from low to high end market segment. Changes of the five building blocks of innovation system of China's car industry have driven the market catch‐up since the 1980s. The five building blocks are: market demand, industrial technology and knowledge base, institutional setting, industrial structure, firms' competences and strategy. China's car industry evolved through exploitation and exploration, which were affected by the five building blocks. The exploitation and exploration shaped the catch‐up way of China's car industry: from production localization to design localization and self‐owned brands. Exploration of the self‐owned brand group built on exploitation of the joint‐venture group.

The findings are based on a single industry. Studies on more industries are needed to generalize the research results.

Increased understanding of how sectoral systems of innovation evolve will give managers and policy makers in the developing countries like China improved opportunities to formulate policies and management practices that can cultivate innovation capabilities in catch‐up.

The paper contributes to the research stream on sectoral systems of innovation by understanding building blocks and evolutionary processes at the base of change and growth in the catch‐up situation.

The purpose of this paper is to discuss the development of high‐tech industry and the dynamics of technological learning, innovation, entrepreneurship in China through the telecom‐equipment industry.

The paper derives a number of research propositions from the literature and then uses four case studies to show how domestic firms narrow their technological gap in different stages of catch‐up and how these firms have been influenced by their innovation capabilities to catch up to the multinationals.

The major findings of the paper may be summarized as follows. First, the innovation capability and self‐developed technologies have been the key to leading domestic firms in catching‐up with the MNCs. Second, leading domestic firms mainly depend on in‐house R&D development, supplemented with external alliance to build their innovation capability. Third, there are two different catching‐up patterns in China's telecom‐equipment industry. One is “path‐following” catching‐up in global system for mobile communication driven by using new technology in low‐end market. The other is “leapfrogging” catching‐up in the development of phone digital switches and China's own 3G standard (time division – synchronous code division multiple access). However, it seems that the leapfrogging strategy will meet more challenges and problems than the path‐following strategy.

Based on the previous researches about technological learning, innovation and catch‐up in the newly industrializing economies, the paper provides a comprehensive elaboration in Chinese telecommunication industry by using case study approach in an original way.

This paper aims to investigate the pattern of technological capability building in the gas turbine industry as a complex product system (CoPS) in an Iranian gas turbine producer named Oil Turbo Compressor Company (OTC) and to recognize multi-level (firm, industry and national) drivers influencing technological catching up in this company.

This paper used a qualitative approach and case study research strategy. A preliminary theoretical framework is proposed based on research background. Also, the data were collected from various sources, including the interview with 11 experts, studying many documents and participating in some relevant meetings and conventions. To analyze the data, the authors relied on their preliminary theoretical framework and applied the chronological sequence analysis technique.

Our findings show that, first, in contrast with mass-produced industries where capability building pattern often leads to product innovation, technological capabilities in OTC have evolved from assembling to manufacturing, upgrading and finally redesigning of existing models of gas turbines. Second, two firm-level (proper technology acquisition strategies and building organizational and managerial capabilities), two industry-level (networking, integration and collaboration among key actors and existence of local market and demand) and two national-level (government’s policies, supports and initiatives and institutional arrangement and political conditions) drivers have played indispensable roles in facilitating and accelerating technological catching up by OTC.

Inevitably, the current research faces a few limitations. For instance, the difficulty of generalization is considered an inherent problem because it is a case study of only one Iranian latecomer company, as well as only one CoPS industry. Regarding implications, the findings suggest that technological catching up in CoPS industries in developing countries is not a simple and autonomous process and is influenced by multi-level factors, including national-, industry- and firm-level drivers.

In terms of theory, this paper tends to investigate and explain the catching-up process in OTC as an Iranian gas turbine producer by applying a multi-level theoretical framework that consists of firm-, industry- and national-level drivers. In terms of practice, this paper aims at investigating drivers affecting the catching-up process in a CoPS industry in a developing country that was faced with vast international sanctions, while many other studies in this area examined cases from developing countries such as Korea and China that had the opportunity of enjoying international collaborations and overseas knowledge flows.

With the fierce competition in a knowledge economy, knowledge-intensive enterprises (KIEs) make technological progress in their catching-up processes through implementing product innovation and process innovation. In this study, the aim is to understand the determinants of enterprise innovation type in China's catch-up environment. Further, this paper intends to deal with two related questions. First, what effect does the internal knowledge base have on KIEs' technology innovation activities? Second, considering the technology gap and technology development speed, what are the different impacts of the knowledge base on the type of technology innovation activities?

This paper collected data from 212 KIEs in China through a two-stage questionnaire survey, combined with statistical data for research. The hypothesis was tested by regression analysis. Specifically, descriptive statistics and regression analysis are introduced to test the hypothetical relationship between the knowledge base and technology innovation. Meanwhile, multiple regression is used to test whether there is any difference in the influence of technology gap and technology development speed on enterprise knowledge base and technology innovation. Finally, the corresponding robustness tests are done.

This study finds that in a sample of Yangtze River Delta KIEs, firms' knowledge base influences innovation types. Specifically, the knowledge base width (KBW) and knowledge base depth (KBD) positively influence process innovation, and KBD positively affects product innovation. Regarding the effects of catch-up context factors on KIEs’ innovation choice, a wide technology gap tends to positively influence product innovation in industries with high levels of KBW. Moreover, when technology development speed is high, its potential positive influence on process innovation will be more significant for industries with deeper knowledge bases.

This paper fills the research gap that existing studies ignore the relationship between types of technology innovation and knowledge base dimensions, especially for KIEs. First, this paper deepens the understanding of the impact mechanism of KIEs' existing knowledge base on innovation activities; the unique use of resources by enterprises is the basis of enterprises' competitive advantage and will become enterprises' competitive advantage. Second, this study indicates that against different backdrops of technology gap and technology development speed, enterprises with different knowledge bases will adopt different types of technology innovation activities. Third, this paper shows that a wider technology gap provides broader innovation space, so the technology gap plays a pulling role in KBW and product innovation, thus pushing forward enterprises' technological catch-up.

This study aims to design a national innovation capability appraisal model. This would indicate Iran’s competitiveness situation among regional countries and suggest factors influencing Iran’s performance promotion.

The methodology included four sections: bibliometric analysis to discover intellectual evolution of innovation capability and related concepts; construction of a multi-division structure of national innovation capability according to the clusters extracted from bibliometric results, and experts’ opinions; creating dynamic network data envelope analysis (DEA) according to designed structure, and analysis of Iran’s performance among regional countries; identification and prioritization of the factors extracted from experts’ opinions that improve Iran’s performance in created network using Fuzzy decision-making trial and evaluation laboratory method.

The contemporary bibliometric analysis by its extracted clusters proved the necessity of a multi-division for measuring national innovation capability performance that each division and indicators of each step were designed according to clusters concepts. In designed structure, dynamic network DEA results revealed the weakness of Iran’s performance in the third division in the transformation of patents and high-tech imports to high-tech and creative exports, which led to proposing improving factors by getting experts’ opinions to enhance Iran’s performance in this division by prioritizing them.

One of the limitations of this research was that the indicators used in three phases of national innovation capability in DEA were extracted only from the World Intellectual Property Organization database. Another limitation was the number of experts in focus group sessions because due to the difficulty of gathering them in one session, the researchers lost the participation of some of these recognized experts. Also, the research concentration was on the improvement of the third phase of national innovation capability, in which Iran’s performance was weak.

Creating a relationship between the divisions of dynamic network DEA, as a national innovation capability appraisal model, and the concepts of clusters extracted from reviewing the intellectual structure and evolution of innovation capability and related concepts.

Catch-up is a process during which the countries that are behind the technological borders try to reduce their technological gaps. For a company or country in the catch-up process, a suitable level of technological capabilities and absorption capacity is necessary as a fixed advance requirement. This paper aims to develop a catch-up model of technology.

This study reviewed 90 published articles in the field of business management in Q1 and Q2 journals from the very beginning to the year of 2018 so that a framework can be presented for a catch-up. This framework has been obtained according to the process of grounded theory and by combining the previous studies.

Accordingly, a framework of six categories has been presented including causal factors, main category, background factors, intervening factors, strategies and consequences. Finally, three general approaches including independence, collaboration and cooperation, are introduced and each of these categories has been described in a spectrum of this approach.

This is the first study to conceptualize a catch-up model of technology by grounded theory.

The purpose of this paper is to explore how China’s manufacturers catch up with the forerunners through R&D cooperation by developing a new mode of latecomer–forerunner R&D cooperation, i.e. the periphery–core mode, which provides a viable way for China’s manufacturers to obtain forerunners’ core knowledge from their periphery knowledge via knowledge spillover and knowledge transfer.

The paper first reviews the literature on R&D cooperation process in the catching-up context and knowledge management in R&D cooperation. Then, three cases of R&D cooperation between China’s advanced technology manufacturers and their forerunners are introduced, with emphasis on interactivities in R&D cooperation and knowledge spillover. On the basis of the multi-case study, the periphery–core mode of R&D cooperation between latecomers and forerunners is conducted.

The paper finds that the latecomers can catch up with their forerunners by acquiring forerunners’ core technology used in periphery R&D activities. Through formal and informal interactions, the forerunners’ core technology can be extracted and transferred to latecomers, which the latecomers can then absorb and further develop. Thus, it can be concluded that the periphery–core mode of R&D cooperation is a viable way for the latecomers to get access to forerunners’ core technology.

The paper contributes to the literature on the catching-up theory by developing the periphery–core mode as a new mode for the latecomers to catch up with the forerunners. It expands the understanding of the latecomer–forerunner R&D cooperation by focusing on the way that China’s manufacturers as latecomers catch up with the forerunners by accessing the forerunners’ core knowledge from their R&D cooperation in periphery knowledge. The paper shows the mechanism of knowledge transfer and spillover in R&D cooperation. The role of communications, especially informal communication between cooperation partners, is emphasized in this process. This study also provides a new perspective for cooperation partner selection by arguing that latecomers can choose their cooperation partners according to the periphery and core knowledge they possess, other than the relationship between them. Besides, this paper emphasizes the mutual support between knowledge transfer, knowledge spillover and knowledge absorption, which is necessary for latecomers to achieve successful catching up in periphery–core R&D cooperation.

This paper aims to argue for a China transmuting to fast overtake USA in innovation based on the extrapolation of past statistical trend. Case studies in self and co-innovation are provided so that the documentation of the dynamics of knowledge flows and a brain-linguistic explanation is given as to why, in the future, the Chinese are likely to lead in innovation.

This paper illustrates a multi-method approach in research for Chinese Management Studies. First, the sociological background of China is highlighted (Mao Zedong’s aphorism). Second, insights from OECD patent database are utilized. Third, the use of comparative research and development case-studies: self-innovation (Chinese) and co-innovation (contrasting Japanese versus French cooperation with Chinese). Fourth, is the inter-disciplinarily approach wherein the assimilating of knowledge is related to recent advances in brain research. Fifth, emphasizing the different levels in organizing for innovation: national (China), organizational (SOE), group processes and person-to-person, synapses within individual brains.

Statistical trend suggests that China is transforming and is on the path toward overtaking the USA in innovation. When will this happen? Using extrapolation as an indication, China may surpass the USA by the 50 per cent mark within the next decade. Insights into the processes of self-innovation and co-innovation are provided. Authors argue for a brain-linguistic explanation (Hebb, 1949) for further understanding why China will eventually lead ceteris paribus innovation, a function of the human brain.

This paper highlights on the basis of statistical trends (using OECD database) a rising, innovative China that is poised to overtake the USA in the near future. A major contribution is in providing insights of interactional processes required to foster innovation: self and co-innovation (comparing Japanese and French). The critical brain-linguistic role as the rationale as to why the Chinese are given a greater, more developed brain power that will eventually surpass the West in innovation.

The purpose of this paper is to study the differences in the internationalization process of firms from emerging economies and the impact of their international expansion related choices on the nature of technological innovations developed by these firms. Specifically, the authors compare two principal perspectives on internationalization – the incremental internationalization process (slow, gradually increasing commitments using greenfield investments to similar host countries) and the springboard perspective (aggressive, rapidly increasing commitments using mergers and acquisitions to advanced host countries).

Building on key differences between the incremental internationalization and springboard perspectives, the authors argue that differences in the speed and mode of entry, as well as the interaction between the mode of entry and location of internationalization, will lead to differences in the types of technologies (mature versus novel) developed by emerging economy firms. The authors examine the hypotheses using panel data from 1997 to 2013 on emerging economy multinationals (EMNEs) from the Indian bio-pharmaceutical industry.

The findings suggest that firms internationalizing at higher speeds and using cross-border M&As tend to have innovations in mature technologies. The interesting findings can be explained by the challenges faced by emerging economy firms in experiential learning and the assimilation of external knowledge. In addition, the authors find that internationalization to technologically advanced countries weakens the relationship between cross-border M&As and innovation in mature technologies, suggesting that direct learning from technologically advanced environments may help alleviate the assimilation challenges of cross-border M&As.

The authors advance literature on EMNE internationalization by comparing the impact of their choice of internationalization approaches (incremental internationalization or springboard approach) on their innovation performance. The authors contribute to literature on EMNEs that has focused on the determinants of internationalization by identifying the learning implications of internationalization. The authors contribute to the nascent stream of literature on the level of innovation and catching up by EMNEs by performing a fine-grained analysis of the nature of technology innovation.

The purpose of this paper is to analyze the internationalization of Chinese new global players through innovation-oriented Mergers and Acquisitions (M&As).

The paper combines the analysis of East-Asian and Chinese multinationals’ international expansion within international business (IB) and innovation domains, with the “latecomer” perspective. It is a conceptual contribution, based on the role of local institutions and firm’s absorptive capacity. A theoretical framework is developed, and further elucidated with two illustrative cases of Chinese M&As abroad in the automotive sector. Implications for theoretical development and practical application are then drawn.

Chinese firms’ M&As abroad have become one of the preferential modes of developing innovation capabilities. The success of these endeavors is argued to be the result of a combination of a strong push from government industrial policies, along with significant internal knowledge assimilation and transformation capabilities.

The paper extends IB literature integrating the latecomer firms’ perspective within a novel conceptual framework, which adds to the traditional resource-based arguments about incumbent MNEs asset and knowledge-seeking internationalization modes, as well as institutional and multi-dimensional absorptive capacity perspectives.