Industrial catch-up in China: a sectoral systems of innovation perspective

This study analyses the industrial catch-up in four sectors in China. The technological regime of sectors affects the chance for latecomers to catch up, but the final outcomes also depend on the actions of governments and firms. A successful catch-up requires the growth of indigenous firms rather than dependence on foreign direct investment. The government has an important role, but different forms of intervention across sectors must be identified. For firms, adopting a path-following strategy does not bring ultimate success, whereas leapfrogging is often required. Any uniqueness in the catch-up pattern of China can be attributed to its large size leading to bargaining power in technology transfer. The Chinese markets with several segments also help to nurture indigenous firms.