The latecomer strategy for global ICT standardization: Indigenous innovation and its dilemma

This article reviews China׳s changing standardization strategies amidst the standards competitions that take place both domestically in China and globally. The relevant policies in China now support indigenous innovation, particularly in the information and communication technologies (ICT) industry by using standards, encourage domestic firms to patent their standard-related technologies, and promote innovation-oriented inter-firm alliances. The three cases examined illustrate the challenges that the Chinese government faces in implementing the policies. Most of all, while the government has actively promoted indigenous innovation as a latecomer strategy for global standardization, there are possibilities of clash with the international norms for free competition and economic liberalization which China is supposed to comply with. There are also oppositions from those domestic firms that mainly export products compliant with the international standards set by advanced countries, and from local authorities that support those firms. The demands for international compliance are often strengthened by multinationals importing products compliant with the international standards. These clashes and oppositions give a dilemma to the policy makers who want to push the standardization strategy based on indigenous innovation.