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Chinese company's IPR strategy: How Huawei Technologies succeeded in dominating overseas market by Sideward-Crawl Crab Strategy

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2 Author(s)
Yutaka Nakai ; Graduate School of Innovation Management, Tokyo Institute of Technology, Japan ; Yoshitoshi Tanaka

Chinese companies are expanding its patent application. Having been a licensee of intellectual property right for a long period of time, they are trying to transform themselves as a creator of their own technologies and patents. Their purposes are to escape from status that their R&D are dominated by patent of MNEs overseas and avoid payment of license fee. In this paper, we take Huawei Technologies as an example, to follow their path to one of the world's biggest patent applicant and the way to China's largest IT company. Their strategies are; 1) Focusing on peaked out technologies and provide abundant output 2) Supplement their technology and patent by collaborating with their rival company and by M&A. 3) Targeting market in developing countries in order to establish de facto standard. Their strategy and success traced a different way from other developing country's way. In this thesis, we call it “Sideward-Crawl Crab Strategy” and present the way for the developing countries company at starting stage to develop and win among dominant MNEs.

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Date of Conference:

18-22 July 2010