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With a longitudinal case study on the development of Liquid Crystal Display (LCD) technology of China Electronics (CEC) Panda, this study examined how Chinese firms build their technological innovation ecosystem (TIE). We explored the evolution and the driving mechanisms of TIE. The results of the study found: (1) The enterprise’s motivations for innovation and innovation efficiency can be improved when the core enterprise’s TIE is constructed. (2) The evolution of the enterprise’s TIE undergoes three stages: formation period, incubation period, and development period. (3) The interaction between the external factors from the environment and the internal factors from the agent drives the evolution of the TIE (4). Three types of driving modes develop, depending on the nature of the main factor affecting TIE development: extrapolation drive, hybrid drive, and internal drive.

The Construction and Evolution of Technological Innovation Ecosystem of Chinese Firms: A Case Study of LCD Technology of CEC Panda