By Yu Jiang Li-Hua Richard
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"When you react, the development controls you. should you reply, you're up to speed. "
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Additional resources for China’s Highway of Information and Communication Technology
They have also benefited from the preferential purchasing practices of Chinese government agencies. Only a handful of domestic companies have gained control of particular products and acquired global customers. In all of these, the government has had a profound influence in its provision of intellectual capital, training and financial incentives. Some examples of the projects include various large-scale government-funded projects dedicated to developing Chinese competence in core computer technologies, such as the Ministry of Science and Technology’s 863 research programme and other government research projects that became the basis for Founder, Legend and other companies.
Entrepreneurs have come up with various business innovations that enable e-business to gain early adapters in China, even in the absence of some critical infrastructure components such as a credit card system or an efficient delivery system. One of the forces driving e-commerce in China will be foreign investment, especially from the US, and China’s accession to the World Trade Organization will accelerate that process. China has taken the first step to participating in the e-commerce arena and the market potential is undoubtedly great.
In some special cases such as wireless SMS services where business, legal and cultural barriers are resolved, technology upgrade allows China to experience diffusion on a par with or even beyond other countries. The service innovation process will have different impacts and conflicting interests among the different players in the industrial system which can facilitate or impede the innovation diffusion. It is quite difficult to launch the innovation process by market mechanisms alone within such a regulated system; it seems that policy interventions are desirable to encourage diffusion by legitimating and spreading the emerging technology.