ABSTRACT
This chapter focuses on Huawei in the telecom-equipment industry. After an overview of the history of industrial evolution and the trajectory of Huawei’s growth, we link Huawei’s success in innovation to its investment strategy and corporate governance. That is, to direct and utilize the company’s high fixed cost investment in R&D, Huawei has made three-pronged investments in obtaining user knowledge, accumulating fundamental technologies, and maintaining a motivated and flexible workforce. As a distinctive feature of Huawei’s corporate governance for innovation, the employee ownership structure is analyzed.
