Catch up of complex products and systems: lessons from China’s high-speed rail sectoral system[Exploring the capital goods economy: complex product systems in the UK]

The article uses a longitudinal case study of China’s high-speed rail from the sectoral system perspective to show how a latecomer achieves catch up in the context of complex products and systems (CoPS). Results indicate the coevolution among high-speed train CoPS, the complementary assets, and government engagement are important to the sectoral system’s catch up. To achieve catch up, a latecomer can choose a strategy in which the complementary assets take precedence over the CoPS, and the coordination of the two systems is maintained with government engagement. In addition, two elements involving the sectoral system’s knowledge base and government engagement play fundamental roles enabling the evolution of the competences of the CoPS and the leverage of complementary assets for catch up. The article contributes to the literature on catch up in the CoPS context using a sectoral system framework.