Competition in core-periphery technology?: Investigation of overseas companies on their integration of Mainstream technologies and surrounding technologies in China

This paper aims to investigate the evolution of technology strategies of international companies operating in China in typical manufacturing sectors. Technology strategies are measured by a CP-system, in which two kinds of technologies, core technologies and periphery technologies, and three layers of technologies, Mainstream Technology (MT), Scope Technology (ST), Service based technology (SBT) are involved. Based on the patent data of 70 manufacturing MNEs selected from Fortune 500 companies, this research tries to shed light on typical questions over technical competitive performance, especially on nature in concentration and diversification, and relevant technical services in those sample F500 companies. Major findings in this paper are: sample F500 companies do possess important technology backed competitive power than other non-F500 companies and local Chinese companies; all sample F500 companies widened their technical areas or technology scope; fields in IPC classification of IT and telecommunication technologies are the most competitive areas for sample F500 companies. On the other hand, other non-F500 sample companies, especially local Chinese companies also increasingly develop their own technology strength in technical areas differentiated with those more competitive fields owned by sample F500 companies. Meanwhile, a strategic positioning of the five clustered sample company group is found on MT and ST in particular for concentrated and scoped technology trend. Through three measures over SBT by using information on subsidiaries, R&D centers in different regions, this paper further provides more overall picture of the sample F500 companies on their technology backed MT-ST-SBT system operations in China.