Complex product and system, catch-up, and sectoral system of innovation: a case study of leading medical device companies in China

Complex product and system has been the main barrier for latecomers' catch-up. Applying a perspective of firm within sectoral system of innovation, under an emerging market background of China, this study aims to investigate firms' catch-up strategy and technological capabilities development for meeting the challenges of complex product and system. Through case study of leading medical device firms in China, this study finds out that interdisciplinary integration, intensive capability investment, progressive cooperation, advanced networking, and specific supporting institution, contribute to resolve the challenges of complex product and system. Accordingly, firms need greater networking interaction and systematic strategic planning. Moreover, close coordination between sufficient domestic market and sporting policy specific to sectoral innovation may accelerate the process of catch-up. It implies that firms need to link their catch-up strategy and technological capabilities development with their sectoral system environment to realise innovation.