Industrial upgrading based on global innovation chains: A case study of Huawei technologies Co., Ltd. Shenzhen

Abstract

Although China is a global trade power, it has low value-added trade, which lies at the bottom of the global value chain. Therefore, there is an urgent need to change the unfavorable position of the international division of labor in China. The global innovation chain is a new development of innovation through which China can implement open innovation and utilize the world's advanced knowledge, technology, information, and other resources to enhance its innovation capabilities, promote industrial upgrading, and improve the status of its global value chains. This paper takes Huawei as an example of international cooperation and innovation, aspects that have allowed the company to rapidly improve its position and prestige in the industry. The case study of Huawei suggests that China should introduce talent, increase investment abroad, attract foreign investment, expand intellectual property trade, develop outsourcing and international strategic research and development alliances, build a global innovation chain, and promote industrial upgrading to elevate the status of its international division of labor. Keywords: Global innovation chain, Global value chain, Open innovation, International innovation cooperation