Introduction to Innovative Capabilities and the Globalization of Chinese Firms

In Chapter 1, McKelvey and Jin (2020) focus upon the three intertwined processes involving innovation, technological capabilities, and globalization of firms in knowledge-intensive innovation ecosystems. Western countries have long taken the lead in developing knowledge and transforming it into business and social innovation, but in recent decades, the Chinese economy has been rapidly advancing. Chinese firms are developing innovative capabilities and engaging in globalization, which affects not only China but also the world. Our theoretical view from Schumpeterian and evolutionary economics is that in the modern economy, the competitiveness of firms depends upon their use of advanced knowledge for innovation as well as their ability to act globally. This book addresses the following themes: 1) Specifying where innovation systems can affect the ability of Chinese firms to identify and act upon innovative opportunities; 2) Analyzing why Chinese firms’ acquisitions and collaboration can affect their capabilities for technology, innovation and globalization; 3) Exploring how Chinese firms develop new capabilities.