Developing new capabilities fori nnovation and development: A study of Swedish firms\u27 responses to tensions in China

This paper contributes by exploring China as an emerging market that represents Schumpeterian environment, and particularly on how that environment may put pressure on companies to change their firm capabilities. The paper will particularly focus upon the evolution of firm capabilities for innovation and development. The firms studied all have a long-term engagement in the Chinese market. All firms are in industry code 70000/100/200/300 , they are foreign multi-nationals, headquartered now or previously in Sweden, and with significantly increasing activity and market share in China. The research methodology is based upon interviews with informed experts, who have worked for many years for these companies, including in China. Moreover, the activities of these MNCs in China have intensified over the years, from production to more development and research activities