The data from other countries patent databases was not collected even though

The data from other countries patent databases was

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China’s domestic market. The data from other countries patent databases was not collected, even though Huawei has been recognized and awarded by World Intellectual Property Organization (WIPO) in 2009 as the World’s Top International Patent Seeker (which ended the almost one decades of domination by Netherlands’ Philips Electronics as the first place on the list). Figure 3 Huawei’s patents in USPTO, EPO, and SIPO Source: USPTO, EPO, and SIPO; collected by author Based on the data collected, we drew the picture in figure 3. Since the number of patents is usually considered as an important indicator of firm’s innovation performance, we can see that Huawei’s innovative capability primarily emerged in 1998 and its marginal increase rate was really high from 2000. In China’s domestic market, English 4 All these information has been collected in <<Shenzhen Company Profiles>>
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10 versioned SIPO patents are specially used to defend from foreign competitors. Figure 3 shows that Huawei worked also hard in China’s competitive ‘ domestic international market’ . Despite the number of patents applied in USPTO is too small to be recognized in figure 3, if just considering the proportion of patents applied in USPTO by Huawei over the whole number of Chinese patents in USPTO each year, we can have conclusion that almost 16% of Chinese patents applied in USPTO each year were accounted by Huawei. Moreover, more patents assigning to Huawei in Europe than that in USPTO implies that Huawei has larger market share in Europe than in U.S. From both marketing and innovation performance perspectives, Huawei’s catching up performed successfully. In order to have thoroughly logical analysis, let us go through with Huawei’s history. Huawei was established by Ren Zhengfei in 1988 in Shenzhen, Guangdong province, China. Initially it was just a small distributor of imported PBX products without any telecommunication knowledge. Five years later, in 1993, Huawei had achieved its primary threshold of knowledge accumulation on PBX and successfully made the first breakthrough in C&C08 digital telephone switch by effectively taking advantage of the technology diffusions from Shanghai Bell (the first Sino-foreign joint venture in China). Huawei thereafter successfully monopolized Chinese rural market and small cities. Afterwards, with higher product quality and improved product development, Huawei started to compete with foreign enterprises in Chinese urban market. As its expertise in networking products, Huawei is also a network operator in the industry. Its network strategy made it benefit not only in normal time but also in the economic crisis. Since the beginning of 2008 when global economic crisis started, Huawei’s sales has never stopped increasing, even more than 46% up from 2007, reaching USD23.3billion in 2008. After 20 years’ continuous development, today’s Huawei has been recognized by Business Week as the 3 rd World’s Most Influential Company (following after Apply and Google).
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