Post catch-up with market cultivation and product servicising: case of Taiwan’s transportation equipment industries

Abstract

This paper sets out to examine a key issue: how a latecomer like Taiwan may develop its industry in a post catch-up manner. We make intensive inquiries into this issue via case studies on two sectors in Taiwan, namely the bicycle industry and the electric vehicle (EV) industry. Our conceptual framework gives special account to fuzzy front-end at the industrial level and how market cultivation and innovative business models come to play an important role in shaping the innovation path for post catch-up. For leading players in Taiwan's bicycle industry, a key issue they faced was how to transform themselves and local setting in Taiwan to become a leader in high-end bicycles to fend off escalated international competition. In the emerging EV industry, the Taiwanese players try to overcome its structural weaknesses in the mainstream automotive industry to explore the possibility of levelling the playing field with the forerunners in the advanced countries. Our case studies suggest that technological catch-up is not necessarily a prelude to post catch-up, depending on the nature of new innovation trajectory and entry modes of the emerging industry. Our analyses also lend support to the importance of product servicising as a means of post catch-up, especially from the perspective of market cultivation.

Simulating the Market Share Variation in Multi-Airport Area Incorporating Airport Choice Habit

“…After calculating x ijm and p ijm , we build the value function as (4), if x ijm > 0, V (x ijm ) would be V + (x ijm ) in (7) and vice versa. The weighting functions (5) and (6) should be also calculated on x ijm and p ijm . The value function is concave for gains (α ≤ 1) and convex for losses (β ≤ 1) according to the principle of the diminishing sensitivity, and α and β measure the degree of the diminishing sensitivity.…”

“…Based on the value function and weighting function, we can use (7) to calculate the prospect utility (PS im ) of choosing airport i with access mode m. In the equation, π ijm are calculated based on the weighting functions of (5) and (6). As a result, passengers are assumed to choose the airport and access with the largest PS im .…”

“…However, the airport market share may not jump from an original level to a substantially higher level as soon as the coach service is conducted; conversely, it always gradually increases within a long duration [5]. Referring to the definition of market cultivation in the marketing science [6],…”

Innovation strategy management survey of the Chilean biomedical industry. Assessment of windows of opportunities to reduce technological gaps

“…One way to narrow the technological gap is called “windows of opportunity.” This term was established by Perez and Soete and refers to a “sectoral system” where companies and organizations of a lagging country could decide to use a proper technology and create a market. These countries could gradually change over time or otherwise totally transform their past . Lee and Malerba provide a deep analysis of windows of opportunity in 3 levels, calling them as follows: “technological window” (demand for technology could allow its development by using the life cycle of a product for better entry barriers), “demand window” (an increased demand could allow a country to enter faster into a specific market), and, finally, “institutional/public policy window” (when, somehow the State intervenes in an industry using many changes, some of which can be extreme).…”

“…These countries could gradually change over time or otherwise totally transform their past. 32 Lee and Malerba 23 provide a deep analysis of windows of opportunity in 3 levels, calling them as follows: "technological window" (demand for technology could allow its development by using the life cycle of a product for better entry barriers), "demand window" (an increased demand could allow a country to enter faster into a specific market), and, finally, "institutional/public policy window" (when, somehow the State intervenes in an industry using many changes, some of which can be extreme). This approach has elements from technology push or from market pull, as well as from extreme innovation versus gradual innovation.…”