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Xielin Liu, Xiao Wang and Yimei Hu

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Xielin Liu, Xiao Wang and Yimei Hu

This original book is a unique and original study on how, in the past decade, Chinese state-owned enterprises (SOEs) have achieved technological innovation in the large infrastructure sector. It reveals a ‘new world’ of Chinese innovations, showing that SOEs are willing to innovate and more than capable of doing so. Based on findings from first-hand data and years of in-depth observations, this book shows how the innovation ecosystem perspective incentivizes and facilitates Chinese SOEs’ innovation and highlights entrepreneurial role of the government.
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Xielin Liu, Xiao Wang and Yimei Hu

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Innovative Capabilities and the Globalization of Chinese Firms

Becoming Leaders in Knowledge-intensive Innovation Ecosystems

Edited by Maureen McKelvey and Jun Jin

This book explains how Chinese firms are increasingly developing innovative capabilities and engaging in globalization. It focuses on knowledge-intensive and innovative entrepreneurial firms and multinationals, which already are – or are striving to become – world-leaders in their technologies and markets, and which do so by their use of advanced knowledge for innovation as well as their ability to act globally. The book advances related debates in entrepreneurship, innovation management, economic geography and international business.
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Edited by Maureen McKelvey and Jun Jin

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Smart Cities in Asia

Governing Development in the Era of Hyper-Connectivity

Edited by Yu-Min Joo and Teck-Boon Tan

At a time when Asia is rapidly growing in global influence, this much-needed and insightful book bridges two major current policy topics in order to offer a unique study of the latest smart city archetypes emerging throughout Asia. Highlighting the smart city aspirations of Asian countries and their role in Asian governments’ new development strategies, this book draws out timely narratives and insights from a uniquely Asian context and policymaking space.
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Keun Lee

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Keun Lee

Chapter 8 examines the experiences of selected industries in Korea to identify the stylized facts in the process of technological capability building and thereby to sort out the conditions for the catching-up to occur. To explain the process, we have built a model of technological and market catching-up. Special attention has been given to the question of whether there has been a case of leapfrogging in any industry in Korea and, if so, what are the conditions for its occurrence. In our framework, we first measure the degree of catching-up in terms of market shares in the world. Then we focus on catching-up in technological capabilities in explaining the different records and prospects of Korean industries in market share catch-up. Using this model, we explain the different technological evolutions of selected industries in Korea in the 1980s and 1990s, including the memory chips (D-RAM), automobile, mobile phone, consumer electronics, personal computer, and machine tool industries. We find three different patterns of catching-up: path-creating catching-up (CDMA mobile phone), stage-skipping catching-up (D-RAM and automobile), and path-following catching-up (consumer electronics, personal computers, and machine tools). We interpret the first two cases of catching-up as “leapfrogging.” We find that important R & D projects involved both private and public capacities (except automobiles where only private R & D was involved), and that entry was not driven by endogenous generation of knowledge and skills but by collaboration with foreign companies.
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Keun Lee

Chapter 13 investigates how through the transformation of latecomer small- and medium-sized enterprises (SMEs) in emerging economies from dependent or subcontracting original equipment manufacturing (OEM) firms into independent or original brand manufacturing (OBM) firms it is possible to achieve a significant catch-up in terms of share of regional or global markets. Given that SMEs are rarely able to make such a transition, we elaborate this dynamic process by performing case studies on eight Korean SMEs. These SMEs created their own paths instead of following their forerunners. These paths are neither entirely new nor take the form of leapfrogging, but are characterized by new combinations of existing paths. We identify several risk factors, such as counterattacks and intellectual property lawsuits, that latecomer SMEs face from incumbent SMEs. In addition, we emphasize the importance of cultivating firm-specific knowledge by engaging in a continuing process of trial-and-error-type in-house experiments.
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Keun Lee

Chapter 9 examines the leapfrogging thesis using the case of catch-up in digital TV by Korean firms. Despite the disadvantages implied by the technological regime of digital TV and the risks facing early entrants in trajectory choice and initial market formation, Korean firms had achieved a “path-creating catch-up” in the sense they chose a different path from the Japanese forerunning firms. As they had been closely watching the technological trends and the standard-setting process, there was less risk of choosing the wrong technological trajectory. Also, despite the lack of sufficient capability and core knowledge base, Korean firms had some complementary assets, such as the experience of producing analogue TV, and were able to develop the prototype digital TV and the ASIC chips, given the access to the foreign knowledge via overseas R & D posts and the acquisition of a foreign company. To secure the initial market size, the Korean firms targeted the US market from the beginning, and their source for competitive advantages was the speedy setting up of the production system for mass production of products at the initial stage. The initial failure of the Japanese firms and the success of the Korean firms do suggest that the period of paradigm shift, like this toward digital technology, can serve as a window of opportunity for latecomers while penalizing the forerunner.