Abstract: Bases on the theory of business ecosystem and technology catching-up, this paper conducts the case study of China’s wireless telecommunications industry. By adopting the methodology of multi-case study and social network analysis, this paper proposes the theoretical framework of “the evolution and innovation of business ecosystem for emerging countries’ new generation information technology industry in globalization context”. We find the co-evolution of technology system, institutional setting, and business ecosystem’s configuration and capability play an important role in supporting the model shift. Through analyzing the changing mechnisms of China’s mobile telecommunications industry’s development model, this paper proposes a parallel development paradigm which extends the theory of technology catch-up. We also provide a new perspective for analyzing the mechanisms and dynamics of industrial evolution.