Review of Innovation Theory Research on Low and Medium Technology Industry

Abstract

In the age of knowledge economy, the innovations in high-tech industries, especially in information and communications technologies (ICT), and biotechnology industries are regarded as the hot topics among academic and policy makers. However, the traditional (mature) industries still account for large shares of employment, production and exports in virtually almost all countries - and will continue to do so for quite some time. Therefore, there are some scholars who pay special attention to low- and medium-technology (LMT) Industries innovations, and have made some achievements. Based on a part of literature of LMT Industries innovations theories, the subjects of the characteristics, strategies, and policies in LMT Industries innovation s are discussed in the paper: 1) the characteristics of the innovation in LMT industries are dominated suppl iers, new technologies, market demand and external sources of innovation; 2) Incremental innovation and architectural innovation (or step-by-step, customer oriented, process specialization) are perhaps the suitable strategy choices in LMT industries; 3) the policy makers should pay more attention to the innovation in the LMT industries and develop the customized supportive policy to boost technical progress and upgrade the LMT industries. Innovation is a complicated thing; the paper provides useful meanings for policy makers and managers to better understand innovation in LMT Industries.