Abstract

As the globalization accelerates its pace, made-in-China products have been travelling around the world for the last few decades. But in Chinese firms, their core technologies are still to a large part enslaved to foreign companies. Chinese government suggested Indigenous Innovation Capability as the essential aspect in the process of economic structure adjustment and economic growth mode’s fundamental shifts. Technological learning is hereby a key pathway for these firms to develop
indigenous innovation capability under the circumstance of the manufacturing industrial structure upgrade. This paper examines the relationship between technological learning, technology capability and innovation performance. Data collected from the sample of 92 Chinese firms are analyzed, and a new model indicating these relationships is testified. The results highlight the importance of technological learning sources, contents and levels, while corresponding policy implications for companies are made in the end.