Catching Up in the Face of Technological Discontinuity: Exploring the Role of Demand Structure and Technological Regimes in the Transition from 2G to 3G in China

Peili Yu, Junguo Shi*, Bert M. Sadowski, Onder Nomaler

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

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Abstract

During technological discontinuity based on the transition from second-generation (2G) to third-generation (3G) mobile telecommunications, Chinese manufacturing firms were catching up with leaders in the global industry. Using computer simulation, the paper examines the extent to which heterogeneous demand structures and competitive regimes affect technological catching up. The paper shows that - during technological discontinuity - a slightly higher technological opportunity in combination with low appropriability and heterogeneous demand are vital for technological catching up. The complementary effects of demand within different regimes of Schumpeterian Mark I and Mark II models are discussed.

Original languageEnglish
Pages (from-to)815-841
Number of pages27
JournalJournal of Evolutionary Economics
Volume30
Issue number3
DOIs
Publication statusPublished - Jul 2020
Externally publishedYes

Keywords

  • Technological catch-up
  • Technological regimes
  • Demand structure
  • History friendly model
  • Chinese telecommunications manufacturing industry
  • HISTORY-FRIENDLY MODEL
  • MOBILE COMMUNICATIONS
  • SECTORAL SYSTEMS
  • MARKET-STRUCTURE
  • INNOVATION
  • INDUSTRY
  • DYNAMICS
  • EVOLUTION
  • STRATEGIES
  • LEADERSHIP

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