The Origins of Technological Catch-up in China

Chapter 2 examines the growth of technological capabilities in the telecommunications industry in China, with a focus on Huawei and ZTE. These companies grew rapidly by localizing the production of fixed-line telephone switches, which were earlier imported or produced by foreign joint venture (JV) companies. While the market used to be completely dominated by foreign products in the 1980s, four locally owned companies caught up with the foreign companies in market shares and became absolute leaders by the end of the 1990s. The catch-up can be explained by three factors, namely, (1) the famous Chinese strategy of technology transfer called “trading market for technology,” (2) the knowledge diffusion from the first foreign JV, Shanghai Bell, to the local R&D consortium and then to other locally owned companies including Huawei, and (3) the government’s explicit promotion measures.

Start-Ups’ Exit Strategies in the Market for Technology

Technology start-ups face tough odds in their journey to commercial success. A key consideration in entrepreneurial decision making is whether and when to find a collaboration partner, in the form of an acquirer. The same decision also applies to the other side of the table, as buyers have to decide whether and when to engage in technology acquisitions through collaborations with start-ups. This chapter looks at the literature that uncovered some of the factors around the key decision of the timing of a collaboration, with specific focus on technology start-ups that also possess patents. For start-ups possessing patents, the recent development of markets for technology offers more opportunities to engage in collaboration and bring their ideas to fruition. The chapter discusses directions for future research in the conclusion.

From Fighting Monopolies to Promoting Industry: Patent Laws and Innovation in Sweden 1819–1914

In this essay, we trace the evolution of four different patent laws in Sweden; from the first Swedish law of privilegia exclusiva in 1819 to the country becoming only the third country in the world to introduce novelty searches into the law of 1884. We discuss the ensuing contemporary public debates surrounding new proposals for legislation, as well as discernible effects of new patent laws. From being mainly a question about the “tyranny of monopolies” in the early laws to being one of “life and death for Swedish industry” in the subsequent laws, we show how changes in patent legislation resulted in three different types of innovation; technological, market and organizational. The results show that although the early laws implied severe litigation problems and considerably shorter patent terms, an early market for technology emerged as legislation had clearly established that intellectual property could be sold, bought and inherited. Concurrently the law of 1856 created a market for patenting services and patent agencies by requiring the use of Swedish agents by foreign patentees. Finally, foreign patenting increased as restrictions on patentees being non-Swedish citizens were gradually phased out.