Title: From production capacity to technological capability: an institutional and organisational perspective

Authors: Qunhong Shen, Kaidong Feng

Addresses: School of Public Policy and Management, Tsinghua University, 100084, China. ' SPRU, University of Sussex, Falmer, Brighton, BN1 9QE, UK

Abstract: China is known today as the |world|s factory| in recognition of its unrivalled production capacity, established over the past 30 years. Production capacity alone, however, does not lead to technological capability in developing countries. The policies that buttressed China|s rapid growth of production capacity do not necessarily support the efficient development of technological capabilities. Through a retrospective study of the power equipment industry, we explore the organisational mechanisms and governmental impacts that led to the current differences between two groups of domestic firms, namely the capacity-oriented firms founded under the |trading market for technology| (TMFT) policy, and the capability-oriented firms that had less direct governmental support.

Keywords: catching-up; technological capability; production capacity; China; developing countries; power equipment industry; organisational mechanisms; governmental impact; government support; capacity-oriented firms; capability-oriented firms.

DOI: 10.1504/IJTM.2010.033805

International Journal of Technology Management, 2010 Vol.51 No.2/3/4, pp.258 - 281

Published online: 06 Apr 2013 *

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