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GOVERNMENT INTERVENTION IN TECHNOLOGICAL INNOVATION SYSTEM IN CATCHING-UP CONTEXT: COMPARATIVE CASE STUDY

Liu, Guanyu

[Thesis]. Manchester, UK: The University of Manchester; 2016.

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Abstract

ABSTRACTRecent years have witnessed many significant changes in the global technology landscape. An interesting change we have observed is that some traditional technology late-coming countries such as China and Korea have started to emerge as influential players in the international arena of technology innovation. Historically, developed countries, holding incomparable advantages in financial markets and technologically intensive industries, have naturally taken the lead in technology innovation; while severe deficiencies and challenges are normally faced for developing, or late-coming countries, in innovation. In the literature, strong support from the government has been proven to be crucial for late-coming countries to overcome the deficiencies and to catch up in technology innovation. Based on innovation system perspective, this dissertation aims to understand how the government intervention in technological innovation system (TIS) promotes technology innovation, especially that in the catching-up context.This dissertation examines two technology innovation cases in China, namely the TD-SCDMA and TD-LTE mobile system innovations. A theoretical framework is developed based on institutional theory to structure the case studies. Qualitative methods including documentary research and semi-structured interviews are applied for data collection. This research concludes that, in the stages of technology development and technology diffusion, different TIS functions need to be achieved and different challenges are faced, which require government intervention. The government could analyse how TIS functions are achieved and how challenges are formed in relation to the TIS structural components, in order to determine the intervention strategy. Government can take both direct intervention on TIS actors, and indirect intervention through impacting TIS institutional environment, with regulative, normative and cognitive instruments. In the catching-up context, government interventions contribute more to path-breaking type technology innovations than path-dependent ones in terms of ensuring the success of innovation. Practical implications for the government to effectively intervene in innovation initiatives are given.