Beyond the Global Factory Model Innovative Capabilities for Upgrading China IT Industry

Int. J. Technology and Globalization, Vol.3, No.4, pp.437 – 459.

26 Pages Posted: 27 Apr 2016

See all articles by Dieter Ernst

Dieter Ernst

East-West Center; Centre for International Governance Innovation (CIGI)

Date Written: April 25, 2007

Abstract

China is now the largest exporter of IT goods. But, as globalisation transforms markets for technology and knowledge workers, China's policy makers and corporate strategists are seeking for ways to move beyond the 'global factory' model. This paper explores what is necessary and feasible. I introduce a concept of 'industrial upgrading' that links specialisation with firm-level and industry-level upgrading and high integration into global networks. This concept is used to discuss specific innovative capabilities needed to upgrade China's IT industry. I argue that "technology leadership strategies" are not the only option. "Technology diversification" can serve as a complementary and arguably less costly option.

Keywords: China, ICT, innovative capabilities, global factory, innovation, industrialisation, global networks, industrial upgrading, venture capital, technology catching-up, information technology, communications, technology diversification

Suggested Citation

Ernst, Dieter, Beyond the Global Factory Model Innovative Capabilities for Upgrading China IT Industry (April 25, 2007). Int. J. Technology and Globalization, Vol.3, No.4, pp.437 – 459.. Available at SSRN: https://ssrn.com/abstract=2770103

Dieter Ernst (Contact Author)

East-West Center ( email )

1601 East-West Road
Honolulu, HI 96848-1601
United States

Centre for International Governance Innovation (CIGI) ( email )

57 Erb Street West
Waterloo, Ontario N2L 6C2
Canada

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
38
Abstract Views
325
PlumX Metrics