Sustainable path to growth: technological capability and innovation strategy for China's private enterprise

In this paper, we give a brief introduction of private economy's important role in economic development of China and recognize the bottlenecks that hinder their sustainable growth. Analyzed from the dynamic resource-based view, we propose the technological evolution of Chinese private enterprise. We classify six types of strategies based on innovation and point out that innovation is the avenue to upgrade their technological capability in the long run. This paper attempts to present possible guidance to private enterprise by matching the evolution process and innovation strategy.