Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry

Hans W. Gottinger

doi:doi:10.11648/j.ijber.20130202.12

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Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry

Hans W. Gottinger

Published in International Journal of Business and Economics Research (Volume 2, Issue 2)

Received: 6 May 2013 Published: 10 June 2013

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Abstract

In this paper we trace the industry development of Chinese suppliers and competitors in the telecommunications industry.The observation period goes from the mid 1980s to about today.In the first stage we observe that Chinese startups targeted the basic need for infrastructural development in telecommunications in Western and rural China in supplying low cost telecommunications gear to those areas which were less lucrative for foreign vendors and joint ventures and were heavily encouraged by the Chinese national government in a sort of nurturing its own infant industry. This kind of asymmetic competition separated the startups from the established players in the Chinese market. We call it the separation stage. In the course of this stage the initiating’three horsemen’ underwent technological learning either through indigenous innovation or imitation of some sort,therefore gaining competitive strength and competing against foreigners on large scale projects in the Chinese market. This led to the convergence stage. When asymmetric competition turns symmetric we observe competitive convergence , in which each technology’s development is directed at expanding its appeal not only in its own home market but in its rival’s as well. While the Chinese companies with the implicit support of the Chinese government continued to gain market share against foreign competitors and as their technological learning advanced product quality at lower cost they expanded in actively seeking to bid successfully for telecommunications projects in developing and emerging economies where they gained further strength by competing on given product quality and lower prices. This is the globalization stage.

Published in	International Journal of Business and Economics Research (Volume 2, Issue 2)
DOI	10.11648/j.ijber.20130202.12
Page(s)	22-32
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2013. Published by Science Publishing Group

Keywords

Business History, Strategy, Technology (Innovation) Management, Industry Development, Globalization

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APA Style

Hans W. Gottinger. (2013). Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry. International Journal of Business and Economics Research, 2(2), 22-32. https://doi.org/10.11648/j.ijber.20130202.12

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ACS Style

Hans W. Gottinger. Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry. Int. J. Bus. Econ. Res. 2013, 2(2), 22-32. doi: 10.11648/j.ijber.20130202.12

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AMA Style

Hans W. Gottinger. Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry. Int J Bus Econ Res. 2013;2(2):22-32. doi: 10.11648/j.ijber.20130202.12

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@article{10.11648/j.ijber.20130202.12,
  author = {Hans W. Gottinger},
  title = {Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry},
  journal = {International Journal of Business and Economics Research},
  volume = {2},
  number = {2},
  pages = {22-32},
  doi = {10.11648/j.ijber.20130202.12},
  url = {https://doi.org/10.11648/j.ijber.20130202.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20130202.12},
  abstract = {In this paper we trace the industry development of Chinese suppliers and competitors in the telecommunications industry.The observation period goes from the mid 1980s to about today.In the first stage we observe that Chinese startups targeted the basic need for infrastructural development in telecommunications in Western and rural China in supplying low cost telecommunications gear to those areas which were less lucrative for foreign vendors and joint ventures and were heavily encouraged by the Chinese national government in a sort of nurturing its own infant industry. This kind of asymmetic competition separated the startups from the established players in the Chinese market. We call it the separation stage.  In the course of this stage the initiating’three horsemen’ underwent technological learning either through indigenous innovation or imitation of some sort,therefore gaining competitive strength and competing against foreigners on large scale projects in the Chinese market. This led to the convergence stage. When asymmetric competition turns symmetric we observe competitive convergence , in which each technology’s development is directed at expanding its appeal not only in its own home market but in its rival’s as well. While the Chinese companies with the implicit support of the Chinese government continued to gain market share against foreign competitors and as their technological learning advanced product quality at lower cost they expanded in actively seeking to bid successfully for telecommunications projects in developing and emerging economies where they gained further strength by competing on given product quality and lower prices. This is the globalization stage.},
 year = {2013}
}

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TY  - JOUR
T1  - Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry
AU  - Hans W. Gottinger
Y1  - 2013/06/10
PY  - 2013
N1  - https://doi.org/10.11648/j.ijber.20130202.12
DO  - 10.11648/j.ijber.20130202.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
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AB  - In this paper we trace the industry development of Chinese suppliers and competitors in the telecommunications industry.The observation period goes from the mid 1980s to about today.In the first stage we observe that Chinese startups targeted the basic need for infrastructural development in telecommunications in Western and rural China in supplying low cost telecommunications gear to those areas which were less lucrative for foreign vendors and joint ventures and were heavily encouraged by the Chinese national government in a sort of nurturing its own infant industry. This kind of asymmetic competition separated the startups from the established players in the Chinese market. We call it the separation stage.  In the course of this stage the initiating’three horsemen’ underwent technological learning either through indigenous innovation or imitation of some sort,therefore gaining competitive strength and competing against foreigners on large scale projects in the Chinese market. This led to the convergence stage. When asymmetric competition turns symmetric we observe competitive convergence , in which each technology’s development is directed at expanding its appeal not only in its own home market but in its rival’s as well. While the Chinese companies with the implicit support of the Chinese government continued to gain market share against foreign competitors and as their technological learning advanced product quality at lower cost they expanded in actively seeking to bid successfully for telecommunications projects in developing and emerging economies where they gained further strength by competing on given product quality and lower prices. This is the globalization stage.
VL  - 2
IS  - 2
ER  -

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Author Information

Hans W. Gottinger

STRATEC Munich Germany

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Plain Text BibTeX RIS

APA Style

Hans W. Gottinger. (2013). Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry. International Journal of Business and Economics Research, 2(2), 22-32. https://doi.org/10.11648/j.ijber.20130202.12

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ACS Style

Hans W. Gottinger. Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry. Int. J. Bus. Econ. Res. 2013, 2(2), 22-32. doi: 10.11648/j.ijber.20130202.12

Copy | Download

AMA Style

Hans W. Gottinger. Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry. Int J Bus Econ Res. 2013;2(2):22-32. doi: 10.11648/j.ijber.20130202.12

Copy | Download

@article{10.11648/j.ijber.20130202.12,
  author = {Hans W. Gottinger},
  title = {Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry},
  journal = {International Journal of Business and Economics Research},
  volume = {2},
  number = {2},
  pages = {22-32},
  doi = {10.11648/j.ijber.20130202.12},
  url = {https://doi.org/10.11648/j.ijber.20130202.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijber.20130202.12},
  abstract = {In this paper we trace the industry development of Chinese suppliers and competitors in the telecommunications industry.The observation period goes from the mid 1980s to about today.In the first stage we observe that Chinese startups targeted the basic need for infrastructural development in telecommunications in Western and rural China in supplying low cost telecommunications gear to those areas which were less lucrative for foreign vendors and joint ventures and were heavily encouraged by the Chinese national government in a sort of nurturing its own infant industry. This kind of asymmetic competition separated the startups from the established players in the Chinese market. We call it the separation stage.  In the course of this stage the initiating’three horsemen’ underwent technological learning either through indigenous innovation or imitation of some sort,therefore gaining competitive strength and competing against foreigners on large scale projects in the Chinese market. This led to the convergence stage. When asymmetric competition turns symmetric we observe competitive convergence , in which each technology’s development is directed at expanding its appeal not only in its own home market but in its rival’s as well. While the Chinese companies with the implicit support of the Chinese government continued to gain market share against foreign competitors and as their technological learning advanced product quality at lower cost they expanded in actively seeking to bid successfully for telecommunications projects in developing and emerging economies where they gained further strength by competing on given product quality and lower prices. This is the globalization stage.},
 year = {2013}
}

Copy | Download

TY  - JOUR
T1  - Chinese Innovation and Competition: An Industry Case of the Global Telecommunications Equipment Industry
AU  - Hans W. Gottinger
Y1  - 2013/06/10
PY  - 2013
N1  - https://doi.org/10.11648/j.ijber.20130202.12
DO  - 10.11648/j.ijber.20130202.12
T2  - International Journal of Business and Economics Research
JF  - International Journal of Business and Economics Research
JO  - International Journal of Business and Economics Research
SP  - 22
EP  - 32
PB  - Science Publishing Group
SN  - 2328-756X
UR  - https://doi.org/10.11648/j.ijber.20130202.12
AB  - In this paper we trace the industry development of Chinese suppliers and competitors in the telecommunications industry.The observation period goes from the mid 1980s to about today.In the first stage we observe that Chinese startups targeted the basic need for infrastructural development in telecommunications in Western and rural China in supplying low cost telecommunications gear to those areas which were less lucrative for foreign vendors and joint ventures and were heavily encouraged by the Chinese national government in a sort of nurturing its own infant industry. This kind of asymmetic competition separated the startups from the established players in the Chinese market. We call it the separation stage.  In the course of this stage the initiating’three horsemen’ underwent technological learning either through indigenous innovation or imitation of some sort,therefore gaining competitive strength and competing against foreigners on large scale projects in the Chinese market. This led to the convergence stage. When asymmetric competition turns symmetric we observe competitive convergence , in which each technology’s development is directed at expanding its appeal not only in its own home market but in its rival’s as well. While the Chinese companies with the implicit support of the Chinese government continued to gain market share against foreign competitors and as their technological learning advanced product quality at lower cost they expanded in actively seeking to bid successfully for telecommunications projects in developing and emerging economies where they gained further strength by competing on given product quality and lower prices. This is the globalization stage.
VL  - 2
IS  - 2
ER  -

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