The pursuit of indigenous innovation amid the Tech Cold War: The case of a Chinese high-tech firm

Abstract

For emerging market firms (EMFs) internationalisation is as an important channel through which knowledge is gained and innovation capabilities acquired. However, rising global uncertainty and geopolitical tension make this increasingly challenging. We employed an in-depth case study approach to examine how a Chinese high-tech firm pursued innovation during the Tech Cold War. We found that the firm focused on pursuing indigenous innovation. Three organisational cultural attributes (patriotism, elitism and endurance of hardship) proved to be particularly important enabling mechanisms. We extend theorisation on EMF innovation management – particularly catching up through internationalisation – by identifying ever more advanced capabilities that provide the basis for increasing the pursuit of indigenous innovation by EMFs. We further contribute to research on techno-nationalism by examining how techno-nationalist policies affect EMF innovation and how firms cope with such restrictions. More generally, our findings advance the emerging field of studies focusing on geopolitics in EMF innovation by highlighting the ever more critical role of international politics and state policies.