Convergence innovation in railway technology: how ERL of Malaysia attained its co-evolution structure for systemic development

By examining the co-evolution structure between two processes – accumulation andassimilation – of Express Rail Link Sdn Bhd’s (ERL) system over the past decade, thispaper explores the transformation of ERL of Malaysia; from a mere user of Siemens’stechnology, to Siemens’s technology partner capable of attaining state-of-the-art operatingsystems for a high-speed rail (HSR) technological system. Both accumulation andassimilation processes of ERL are examined in detail to elucidate the dynamic process ofthe ‘multilateral model’ of a HSR system. The approaches have led ERL to witnessconvergence innovation between Siemens’s technology and ERL’s knowledge in operatingsystems. The convergence innovation between the two processes has enabled ERL toventure into engineering consulting services, exporting innovative operating solutions toother firms abroad. The strategic approaches discussed in this paper may thus provide policylessons for other firms in developing countries aspiring to emulate the upgrading process ofrail technology.