The name is absent

DRAFT 2.2006

Technology, Innovation and Latecomer Strategies: Evidence from
the Mobile Handset Manufacturing Sector in China

Lei Ding* and Kingsley E. Haynes**

Abstract:

The closing of the gap in competitive capacity between developing and developed
economies is explored using China’s telecommunications industry. Since the entry of
Chinese domestic mobile handset manufacturers in 1998, Chinese domestic suppliers
have successfully surpassed the market share of joint ventures while direct imports
have been largely phased out. By examining China’s telecommunications in general
and its mobile handset manufacturing sector in particular, we found several factors that
contributed to the competitiveness of China’s domestic manufacturers. These are
discussed in three categories: market conditions, competition, and government support.

Keywords: Technology, Competitiveness, Economic Convergence, Industrial Policy,
Telecommunications, China

* Research Faculty, Center for Community Capitalism, The Frank Hawkins Kenan Institute of
Private Enterprise, University of North Carolina, Chapel Hill, NC USA

** Corresponding Author: Ruth D. and J.T. Hazel, MD Chair in Public Policy, School of Public
Policy, 3C6, George Mason University, Fairfax, VA 22030 USA; email: [email protected]

China's Mobile Handsets FINAL DRAFT 2006.sph ERSA2006 Greece

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