The Analysis of Chinese Enterprises’ Upgrading From OEM to ODM: The Opportunity Windows and Paths

Zhiying LIU, Xiaofeng ZHENG


This paper discusses the opportunities and the paths of upgrading from OEM(Original Equipment Manufacturer) to ODM(Original Design Manufacturer) in China. We propose the “opportunity windows” of upgrade for Chinese enterprises by structuring a revised A-U model, analyze the environment of upgrade by a two-enterprises and two-cycle model. The article considers that as many OEM enterprises are in a period foreign technology spilling more slowly and difficultly, or the “spillover inertia”is getting dispeared. China’s OEM enterprises need to strengthen their innovation level to infuse them with new power of upgrade, these ways include absorbing the technology spillover, reverse OEM,  industry-university-research coordination, Independent R & D.


OEM; ODM; Opportunity windows; Upgrade; Innovation paths


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