China's Evolving Industrial Policies and Economic Restructuring by Zheng Yongnian Sarah Y. Tong

Author:Zheng Yongnian, Sarah Y. Tong [Zheng Yongnian, Sarah Y. Tong]
Language: eng
Format: epub
Tags: Business & Economics, Development, Economic Development, International, Economics, History, Asia, China, Social Science, Ethnic Studies, General
ISBN: 9780415656887
Google: GzdwLwEACAAJ
Publisher: Routledge
Published: 2014-06-23T02:43:23+00:00

Cultivating close collaboration with those in the knowledge frontier

In the second half of 1987, ZTE decided to develop a PBX digital switch. The problem was that they had only three to four people who majored in switch technology or computer science. To strengthen the firm’s R&D capability, ZTE collaborated with the Beijing Institute of Postal and Telecommunications. In November 1989, ZX500 was successfully developed. ZTE claimed it the first domestically developed digital switch.

ZTE institutionalized the practice of collaborating with those in the knowledge frontier by setting up research institutes close to them. It has set up research institutes in Najing, Beijing, Shanghai, Xi’an, and Chongqing. Such close collaboration has been very effective. For example, ZXJ10 was developed (in 1995) by the Nanjing Institute, established in September 1993. It was a key large-scale digital switch developed domestically and helped lay the foundation for ZTE transforming from a low-end product maker to a major telecom equipment firm.

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