FDI and Chinese Firms' Secondary Innovation

Abstract

As one of the most important drives, FDI has been paid more and more attention for its effects on constructing the technological innovation capability and sustainable strategic competitiveness in the less developed countries. Innovation is the primary driving force of economic growth and globalization. Under the circumstance of economic and technological globalization, innovation process presents new features. How to gain, maintain, consolidate and develop competitive advantages is an exigent question that attracts the attention from both scholars and entrepreneurs. This paper tries to have a look into the characteristics of Chinese firms' secondary innovations in global competition. Some countermeasures for Chinese firms to survive and grow in global manufacturing are proposed. And implications on competitive strategies to gain late comer's advantage are discussed.