Building innovative capability in firms of developing countries to face the domestic global competition

Based on China´s telecommunications manufacturing sector, this paper explores the innovative building process of latecomer firms of big developing countries from the perspective of technical cycle. The maturation and stabilization of a dominant design makes it more feasible for latecomer firms to penetrate the evolving technical cycle and integrate changing needs of local customers with its technological capability. Furthermore, these findings can be utilized to enrich the traditional technical cycle theory.