Abstract:Dominant design (DD) has the dual nature of technology and market. The formation of DD relies on technology-market double helix. The dual monopolies of technology and market along with the political suppression from International DD have caused multiple market failures for developing countries, traditional government intervention can’t be effective in dichotomous logic of government vs market. It’s necessary to exert the advantages of the “intermediate zone” mechanism with Chinese characteristics,including the organizational pushing force from better combination of “efficient market” and “effective government”, and the market pulling force driven by the “big country demand effect”. This study shows that China’s firms have targeted core technologies in IDD, instead of bypassing these technologies and only engaging in peripheral low-end technologies. Rather than follow the established technological trajectory of IDD, China’s firms prefer to choose different trajectory to promote indigenous innovation, and more conducive to the development of China’s DD and the breakup of international monopoly.