China’s Technological Catching-up in the Knowledge Economy: Opportunity and Challenge of Moving Toward Endogenous Innovation System
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Although the current level of China’s economy and innovation is still in the catch-up stage, its remarkable progress has become a role model for most of underdeveloped countries. The unprecedented economic growth along with technology progress in China during past two decades has been largely driven by China’s efforts to make improvement in the performances of the national innovation system (NIS). The two decades market-oriented reform of China since 1985 has improved efficiency and performance of its science and technology (S&T) system, transforming it toward a highly dynamic, interactive and efficient one, as those in the advanced countries. In recent years, China’s improvement in S&T activities has been largely driven by a set of market-oriented institutional reforms, strong investment in research and development (R&D), development of human capital in S&T and infrastructures, and effective adoption of foreign knowledge and technologies, especially through foreign direct investment (FDI), and interactions of social institutions. However, China still has a long way to go to build the mature NIS. While China successfully reforms its innovation system, it also faces several challenges for moving toward endogenous system. The challenges now include weak innovative capabilities of the private sector, inadequate intellectual property rights (IPR) protection, a shortage of skilled workers in S&T, regional discrepancy in innovative activities, and weak linkage between innovation actors.
Abstract
Although the current level of China’s economy and innovation is still in the catch-up stage, its remarkable progress has become a role model for most of underdeveloped countries. The unprecedented economic growth along with technology progress in China during past two decades has been largely driven by China’s efforts to make improvement in the performances of the national innovation system (NIS). The two decades market-oriented reform of China since 1985 has improved efficiency and performance of its science and technology (S&T) system, transforming it toward a highly dynamic, interactive and efficient one, as those in the advanced countries. In recent years, China’s improvement in S&T activities has been largely driven by a set of market-oriented institutional reforms, strong investment in research and development (R&D), development of human capital in S&T and infrastructures, and effective adoption of foreign knowledge and technologies, especially through foreign direct investment (FDI), and interactions of social institutions. However, China still has a long way to go to build the mature NIS. While China successfully reforms its innovation system, it also faces several challenges for moving toward endogenous system. The challenges now include weak innovative capabilities of the private sector, inadequate intellectual property rights (IPR) protection, a shortage of skilled workers in S&T, regional discrepancy in innovative activities, and weak linkage between innovation actors.
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