Technology Catch-Up in China Compared with Japan: A New Development Model

Abstract

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 purpose of this paper is to identify the key features of the Chinese catch-up process to propose an alternative model of catch-up that takes into account key features of the current environment, some of which differ critically from Japan. First we review the Japanese catch-up processes during the 1960s-1980s to highlight key features. Next, we introduce our framework that is grounded in China's experience, and describe China's on-going catch-up process in those terms. We then look specifically at the mobile phone handset industry to illustrate the catch-up process in China. Finally, we discuss the general implications of our framework for both research and policymaking.