This paper introduces the evolutionary process of technological innovation and technology management in Chinese enterprises since 1949. First, the transition of corporate management and technology management in China is introduced in comparison to Western-style management. Then, based on the historical description and case studies, the typical technology development process, especially the processes of technological acquisition, learning and secondary innovation in Chinese enterprises, is analyzed. The integration between technology acquisition and in-house design and R&D is emphasized. The authors suggest that "assimilation and self-design upon imported technology" (3-I policy) is the suitable and vital technology development avenue for most Chinese firms. To accomplish such a technological avenue, coordination, which exists between product innovation and process innovation, corporate strategy and technology strategy, and technology evolution and organizational change must be organized well and dynamically. As Chinese firms face more severe competition than ever, more attention should be paid to the development of indigenous capabilities for technological innovation. The firms' innovation system (FIS), which emphasizes the infrastructure support for a firms entrepreneurship, R&D system, and organization, as well as high-talent personnel, should be established or improved. Thus, technology strategy and the technological innovation system are currently the two key issues of management of technology (MOT) in China and will continue to be into the coming century.
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