Foreign technology or indigenous innovation

In an increasingly globalized world, the mode of innovation is becoming more and more open. How can China make good use of open innovation to solve its problems in the process of catch-up? Through international comparison and the practice of home enterprises, the article argues that to make open innovation efficient, indigenous R&D is a precondition not only for the assimilation and adaptation of transferred foreign technology but for the development of its own technological capabilities. The authors suggest that the following measures should be taken: Guide of government policy, a “two-leg forward” strategy, university-industry linkages and IPR protection. Successful examples are given to demonstrate their possibilities.