The environment in which Chinese firms are attempting to catch up is fundamentally different than the situation facing earlier latecomers such as Japan and Korea. This paper contrasts these contexts and describes an alternative model of catch-up that can be discerned through an examination of the industries in which Chinese firms are competing successfully. The basic elements of Chinese catching up strategy are: market size, market-oriented innovation, global alliance and open innovation, spillover of FDI and role of government. The paper explains the new model of catch-up in China’s ICT industry.
Keywords: catch-up, IT industry, innovation, China