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Chinese hi-tech multinationals strengthen their technological competitiveness in their internationalization process. Their strategic emphasis on cooperation with academic institutes to develop professional knowledge is an important yet underexplored issue in the extant literature. Based on the comparison between a pair of hi-tech companies—HUAWEI from China and CISCO from the US, this study analyzes the process of technological evolution of the former during 1998-2014, which has already become one of strategic solutions for Chinese multinationals (CMNE) to catch up with traditional counterparts in technological field. This study contributes to the present theory of CMNE by disclosing the Firm-University Cooperation (FUC) strategy, as well as its significance and implications for later-comer’s catch-up trajectory in international business.

An Evolutionary Catch-up Strategy of Innovation: Knowledge Transfer of Chinese Hi-tech Multinationals Through Firm-University Cooperation