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<p>China’s emergence as a global innovation powerhouse presents a theoretical puzzle. Decades of unprecedented economic growth have been analyzed, yet the mechanisms behind the country’s technological transformation remain contested. Existing theoretical frameworks, developed within the context of advanced Western economies, struggle to adequately explain the trajectory of a latecomer nation that has rapidly transitioned from an alleged “imitator” to a dominant force in critical technology domains. This study argues that this theoretical gap exists because a key firm-level process has been overlooked. We introduce secondary innovation (SI), a framework conceptualizing the process of leveraging, adapting, and reintegrating global knowledge to create novel, context-specific value. Through a rigorous historical analysis of technologies and evidence-based case studies of prototypical firms, we posit that SI has been a central mechanism of China’s development. This study makes two main contributions. First, we advance innovation theory by putting forth SI as a micro-foundational perspective that addresses conventional models’ inadequacies in specifying innovation pathways in latecomer and non-Western settings. Second, we provide actionable insights for innovation policy by demonstrating SI’s role in fostering emerging economies’ resilient, innovation-led growth. This paper thus positions SI as a primary concept in the discourse on technological change and economic development.</p>

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Secondary innovation in context: understanding the rise of China as an innovation economy

  • 期刊论文

  • 出版模式：

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  • 发表日期：

    2026年5月7日

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  • Fayaz Ahmad Sheikh,
  • Soumodip Sarkar,
  • Xiaobo Wu

摘要

China’s emergence as a global innovation powerhouse presents a theoretical puzzle. Decades of unprecedented economic growth have been analyzed, yet the mechanisms behind the country’s technological transformation remain contested. Existing theoretical frameworks, developed within the context of advanced Western economies, struggle to adequately explain the trajectory of a latecomer nation that has rapidly transitioned from an alleged “imitator” to a dominant force in critical technology domains. This study argues that this theoretical gap exists because a key firm-level process has been overlooked. We introduce secondary innovation (SI), a framework conceptualizing the process of leveraging, adapting, and reintegrating global knowledge to create novel, context-specific value. Through a rigorous historical analysis of technologies and evidence-based case studies of prototypical firms, we posit that SI has been a central mechanism of China’s development. This study makes two main contributions. First, we advance innovation theory by putting forth SI as a micro-foundational perspective that addresses conventional models’ inadequacies in specifying innovation pathways in latecomer and non-Western settings. Second, we provide actionable insights for innovation policy by demonstrating SI’s role in fostering emerging economies’ resilient, innovation-led growth. This paper thus positions SI as a primary concept in the discourse on technological change and economic development.