Abstract: Most of the existing researches on reverse innovation mainly focus on manufacturing. The issues of reverse innovation of engineering and technical service have not been well investigated. Some significant results have been found through grounded analysis of three latecomer engineering and technical service enterprises cases. Firstly, key success factors are identified, including the localized technological capacities, the capacities of international connection, the capacities of governing services links and the capacities of organizational learning. Secondly, evolution and regulations of key factors are concluded, such as evolution from “indigenous technology localization” to “international technology localization”, “partial and passive international connections” to “comprehensive international connections”, “adaptive learning” to “leading edge learning” and bootstrapping of capacities of governing “services links”. This paper extends the concept of localized technological capacities. In addition to “indigenous technology localization activities”, “international technology localization activities” should be included. This paper define the concept of “services links”, the links and construction process have been revealed.

Key words: latecomer enterprise, reverse innovation, engineering and technical service, innovation catch-up