State-led technological innovation of domestic firms in Shenzhen,China: Evidence from liquid crystal display (LCD) industry |
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| Affiliation: | 1. Institute of Technology Management, National Tsing Hua University, Taiwan;2. Institute of Business and Management, National Chiao Tung University, No. 118, Sec. 1, Chung-Hsiao W. Rd., Taipei City 100, Taiwan;3. Department of Finance and International Business, Fu Jen Catholic University, No.510, Zhongzheng Rd., Xinzhuang Dist., New Taipei City 24205, Taiwan;1. Jagiellonian University, Institute of Economics Finance and Management, ul. Łojasiewicza 4, 30-348 Kraków, Poland;2. Professor of Management and Marketing Research, Institute of Management and Economics, Clausthal University of Technology, Clausthal-Zellerfeld, Germany;3. Montpellier Business School, Department of Management, Entrepreneurship and Strategy, 2300 Avenue des Moulins, 34185 Montpellier Cedex 4, France;4. Durham University, Durham University Business School, Mill Hill Lane, Durham DH1 3LB, United Kingdom;5. Copenhagen Business School, Solbjerg Pl. 3, DK-2000 Frederiksberg, Denmark;1. School of Management, Wuhan University of Technology, Wuhan, Hubei 430070, PR China;2. Department of Information Technology & Decision Sciences, Old Dominion University, Norfolk, VA 23529, USA |
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| Abstract: | Since 2000, particularly in the aftermath of the global financial crisis, there has emerged revisit of the role of the state in technological upgrading of latecomer cities and regions in developing countries, including China. The effectiveness of a technological innovation strategy driven by transnational corporations (TNCs) has been questioned, despite its significant contribution to rapid industrialization via strategic coupling in the global production networks (GPNs). There has been a paradigm shift of innovation policy towards indigenous innovation through state-led explicit coupling of designated domestic firms and lead firms in the GPNs. The practice of this remains understudied, however. By examining the development of the liquid crystal display (LCD) industry, one of the strategic emerging industries (SEIs) in Shenzhen, this paper sheds light on the collective roles of various state authorities ranging from the central to provincial and municipal governments in fostering technological innovation of domestic firms (e.g. CSOT) through explicit coupling with global lead firms (e.g. Samsung). The empirical experience in Shenzhen indicates that indigenous innovation focused on domestic firms may unnecessarily exclude the participation of TNCs. This study urges more research to examine the changing dynamics of technological catch-up of domestic firms in an increasingly globalized and uncertain world economy. |
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| Keywords: | Technological innovation State Domestic firms Strategic emerging industries LCD industry Shenzhen China |
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