Private High-tech Enterprises, Research, Development Model Based On Core Competencies

Private high-technology companies have been quickly developing from 1980's in China. With the mature of the social market economy in China, they face more and more difficulties in business development. This paper discusses the business mode of private high-technology companies based on core competence theory.Firstly, this paper discusses the developing stages of private high-technology companies. Based on this, the six problems faced by private high-technology companies are examined in detail. Then this paper presents some examination on the core competence. The author suggests that core competence is the source of sustainable competitive advantage. It consists of six elements, i.e., core technology, human resource, information management, organization governance, capital operation and innovation culture. Base on this definition, a THIOCC1 measurement framework is presented. After this, a core competence-based mode of private high-technology companies is advanced and discussed in detail.Finally, the author puts the above presented theoretic framework into practice. The core competence of Shenzhen Mindray Bio-Medical & Electronic Ltd. is analyzed and measured with the THIOCC1 framework.