Innovative behavior of large Chinese companies in the conditions of globalization

The authors note that in the conditions of globalization there is a need for Chinese companies to develop innovative policies in order to increase their competitiveness. Large Chinese companies are valued as active players in the world economy. Their activities can be seen in their expansion to the goods and services market, as well as in their talent to quickly adapt to the traditions and customs of other nations. The capability to introduce innovation is provided by both the government and the companies themselves. Attention is drawn to the fact that the innovation process in corporations is difficult and controversial. The striking successes of Chinese companies have their own history, which can be divided into two stages: the first period is quite long - from the 1980s until 2005. All companies, large, medium, and small, carried out a massive technology transfer with the goal of organizing fast methods of production. The transfer was carried out on a legal basis, as well as using methods of industrial espionage. The second stage starts in 2006 when the state put forth the task of building an innovative economy in China. Leading Chinese companies have set a goal of creating their own brands, which are presented by them on the domestic market and later will be introduced to the world market. As an example, the authors examine the development of the innovation process in the automotive industry of China. The automotive industry is a sector in which global multinational companies operate. In these conditions, gaining access to the industry is difficult for companies in developing countries and is done mainly through their attraction to the value chain, which is formed by global players. This place on the chain was seen as relatively low by an assembly of models specified by global corporations, based on the use of outdated technologies. In these conditions, all of the chain's regulatory processes are left to foreign transnational corporations. The next level of technology transfer is manifested in the creation of localization, which is when western transnational corporations begin forming factories in developing countries to produce components, and on this basis clusters are formed. Chinese automakers are starting to participate in the joint creation of research centers with foreign companies, which is considered to be a high level of participation on the value chain.

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