Title: Technology strategies of innovative Chinese domestic companies

Authors: Peilei Fan, Xudong Gao, Kazuo N. Watanabe

Addresses: School of Planning, Construction, and Design, Michigan State University, 215 UPLA building, MSU, East Lansing, MI 48824, USA. ' Department of Technology Economics and Management, School of Economics and Management, Tsinghua University, Haidian District, Beijing 100084, China. ' Gene Research Center, Graduate School of Life and Environmental Sciences, University of Tsukuba, 1-1-1 Tennoudai Tsukuba, Ibaraki, 305-8572, Japan

Abstract: We conclude three main findings on technology strategies of innovative Chinese domestic companies. First, both internal and external factors have affected their decision of focusing on internal development to build up their innovation capability. The internal factors include resource limitation and belief in self-developed technologies for industrial leadership. The external factors refer to unavailability or high-cost of technology transfer at the international market. Second, the R&D locations of innovative domestic companies have been strategically concentrated in the triangle of Beijing-Shanghai-Shenzhen. Third, innovative domestic companies have transformed their better understanding of home market demand into pressure and motivation for innovation.

Keywords: innovation capability; R&D location; research and development; technology strategy; information technology; communications; ICT firms; biotech firms; domestic companies; government; high-tech parks; Beijing; Shanghai; Shenzhen; China; home market demand; biotechnology; technology catching-up.

DOI: 10.1504/IJTG.2007.015454

International Journal of Technology and Globalisation, 2007 Vol.3 No.4, pp.344 - 363

Published online: 17 Oct 2007 *

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