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4 - Exploring the Role of Government Involvement in Innovation

The Case of State Grid Corporation of China (SGCC) and INVAP

from Part I - Drivers of Innovation in Emerging Markets

Published online by Cambridge University Press:  15 March 2021

By
Lourdes Casanova ,
Anne Miroux  and
Diego Finchelstein
Edited by
Fernanda Cahen ,
Lourdes Casanova  and
Anne Miroux
Fernanda Cahen
Affiliation:
Centro Universitario FEI, Brazil
Lourdes Casanova
Affiliation:
Cornell University, New York
Anne Miroux
Affiliation:
Cornell University, New York
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Summary

Chapter 4 explores the role of government involvement as a driver for innovation and highlights the variety of approaches followed in EMs. The chapter examines this issue through two very distinct case studies. One is the case of State Grid Corporation of China (SGCC), a state-owned company operating in the electricity sector and the fifth-largest firm in the world by revenues. SGCC has rapidly expanded globally, partly thanks to a technology it developed that reduces energy losses during electricity transmission. Its case illustrates the determined and proactive role played by the state to make China an innovation leader in a number of areas. The other is the case of INVAP, an innovation-based state-owned Argentine company that specializes in the production of nuclear reactors and satellites. INVAP and SGCC are just two samples of a greater universe of highly competitive SOEs, that have the capabilities to innovate and grow. Both cases illustrate case how the collaboration of the state and the firm has encouraged internationalization and innovation.

Keywords

State-owned enterprisesinternationalizationsoft budgetpatient capitaltransmission and distribution (T&D)UHV technologyindigenous innovation
Type
Chapter
Information
Innovation from Emerging Markets
From Copycats to Leaders
 , pp. 95 - 121
Publisher: Cambridge University Press
Print publication year: 2021

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