How do firms specialize? The technological positions of Chinese robotics firms

Abstract

This study analyses how firms sharpen technological specialization as they develop technologies. We investigate the technological positions of firms in the Chinese robotics industry, which has been rapidly growing in recent years. Using patent information for technological fields that firms focus on, firstly, we show that the technological positions of Chinese firms have been getting close to that of a Japanese first-mover firm in the same industry. Secondly, we examine the characteristics of the technological positions of Chinese firms and show that specialization consists of technologies which realize the basic functions of robots and those which improve the sophistication of products. Specialization generally means a strength rooting in narrower technological fields, but it is established as an expansive structure that straddles various technological fields. Therefore, to evaluate the strength of each firm, it is necessary to compare the commonalities and differences of technological positions.

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