The role of open enterprises in overcoming the Middle-Technology Trap

Abstract

This paper aims to unveil the role of openness in fostering enterprises to achieve technological progress. By conducting a comparative analysis of Chinese and Western companies’ supply chain strategies in the internet and new energy industries, the article finds that American enterprises have a higher level of supply chain openness than Chinese enterprises in both two industries. Based on the case analysis, that paper argues that openness plays a vital role in promoting technological innovation in enterprises. The profound influence of openness in promoting technological advancement may be observed through three aspects: openness at the technical level, openness in attracting talent, and openness in facilitating the development of rules and regulations. Accordingly, suggestions are proposed to assist Chinese enterprises in avoiding the “Middle-Technology Trap” through openness on the basis of legislation and public policy intervention. Meanwhile, the Chinese government is suggested to promote national coordination to establish a national unified market to realize the three levels of openness of the supply chain and industrial chain strategies: enterprise-level, domestic regional level, and international level.