Mobile Manufacturing Companies in China grows very fast thanks to rapid growth of mobile industry. Mobile Manufacturing Companies are composed of equipment industry and hand-phone industry. This paper is a study on the accumulation of technological ab...
Mobile Manufacturing Companies in China grows very fast thanks to rapid growth of mobile industry. Mobile Manufacturing Companies are composed of equipment industry and hand-phone industry. This paper is a study on the accumulation of technological abilities of hand-phone industry.
The industry is now at the absorption stage since 1999, passing through introduction stage of 1987-1998. The industry had set-up and led by foreign companies such as Motorola, Nokia and Ericsson during 1987-1998, and there had been no market share by local companies. The market share of local companies has passed the share of foreign companies since 2003. The representative local companies are TCL and Bird.
Besides market, China government developed TD-SCDMA technology in 2000, which is a fusion of GSM type and CDMA type, and got an ITU standard. But, the technology has not been market yet. If this technology will be appeared in the market, the industry will enter so-called the generation stage.
The relationship between R&D and market results in the industry during 2001-05 are regressed. Data are gathered from 20 companies that had been listed as top 100 companies at the CCID during the period. Dependent variables are sales and operating income respectively. Independent variables are employees, R&D, export, and dummy variables representing local or foreign companies. Panel data of 20 companies with 5 years are analyzed.
Every model including employees has no statistical significance. This results means that employees in Chinese companies are not the signal of optimizing management. New models except employees, however, are regressed. Both dependent variables are well-fitted showing 72% of operating income and 87% of sales. Dummy variable has no statistical significance at any case, which means there are no big impacts by foreign companies at the stage.