TD-SCDMA, LTE-TDD, and China Mobile: Catch-up and innovation in the Chinese telecommunications industry

When there is no powerful competitor in the market, it is relatively viable for SOEs to foster innovation capabilities and developing leading technologies. But with existence of such competitors, as a latecomer, how can an SOE catch up and excel? Based on retrospection on the failure of TD-SCDMA (3G) which were strongly led by the government and undermined by ineffectual coordination among the technology suppliers, this chapter demonstrates how China Mobile, taking the windows of opportunity in the Chinese telecommunications industry and functioning as a lead user, built up an international innovation ecosystem and furthered cooperation among the players for developing the LTE-TDD (4G) technology and its widespread adoption.