Catch-up in nanotechnology industry in China from the aspect of process-based innovation

Nanotechnology is frequently heralded as an emerging strategic industry in developed and developing countries. However, little is known about the catch-up of companies in emerging industries like the nanotechnology industry in developing countries, such as China. From the perspective of process-based innovation proposed by Linton and Walsh, this paper explores the catch-up process and role of process-based innovation in nanotechnology companies. The research reveals the catch-up process in emerging industries in developing countries is different from the original Utterback and Abernathy (U-A) model and Kim's model, the reverse U-A model, and confirms the model proposed by Linton and Walsh. Innovation in the catch-up process in emerging industries in developing countries follows the same stages as that in advanced countries, but there is a time delay in the start of commercialisation. The research showcases a large role for competitiveness derived from owning critical technology in the production process (process-based innovation) in the catch-up process. This research contributes to the catch-up theory and catch-up in emerging industries, such as nanotechnology industry.