Secondary innovation: the path of catch-up with 'Made in China'

Is endogenous innovation merely in the form of original innovation? In this paper, we attempt to illustrate a typical catch-up path with 'Made in China' named 'secondary innovation', which goes towards the virtuous circle of foreign technology acquisition and endogenous technological innovation, through an indepth longitudinal case study. Although secondary innovation is based on foreign imported technology, it is fundamentally different from simple imitation and adaptation of imported technology. Basic assimilation is just the first step of secondary innovation, and is further followed by 'structural understanding', 'functional understanding' and 'conceptual understanding'. Without considerable active assimilation and absorption, the latecomer firm would probably fall into a vicious circle of 'import - lag behind - import again'.