The　software　industry　in　China　is　lagged　behind　that　of　the　developed　countries,　thus　the　direct　competition　in　R&D　investment　with　the　software　leaders　in　the　world　is　believed　not　wise.　In　this　paper,　it　is　advised　that　China＇s　software　industry　take　the　strategic　choice　to　be　a　follower,　by　making　use　of　technology　spillover　and　adopting　imitation　innovation　with　less　investment　and　risk.　A　Chinese　case,　that　is,　QQ＇s　imitation　of　ICQ,　is　used　to　analyze　how　an　innovation　follower　can　become　successful.　This　paper　ends　up　with　suggestions　as　for　how　the　Chinese　software　industry　can　imitate　and　develop　its　software　industry.　(c)　2006　PICMET.