The Evolutionary Process of Secondary Innovation in the Context of Globalization

Abstract

This paper examines the evolutionary process of secondary innovation in a typical Chinese equipment manufacturing firm in the context of globalization and elaborates how to achieve latecomer's advantage from imitation to innovation. Four stages are identified in the process of international manufacturing: the equipment import stage, the production cooperation stage, the R&D cooperation stage and the global operation stage. Technological innovation evolves as follows: from duplicative imitation to creative imitation, and then from exploitative innovation to explorative innovation. Through the evolutionary process, a firm can take advantage of globalization to accumulate knowledge and improve its capabilities, which enable it to upgrade in the global manufacturing network.

Keywords

technological innovation secondary innovation international manufacturing Chinese firm

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