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China as an Innovation Nation$
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Yu Zhou, William Lazonick, and Yifei Sun

Print publication date: 2016

Print ISBN-13: 9780198753568

Published to Oxford Scholarship Online: March 2016

DOI: 10.1093/acprof:oso/9780198753568.001.0001

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Evolution of Chinese State Policies on Innovation

Evolution of Chinese State Policies on Innovation

Chapter:
(p.33) 2 Evolution of Chinese State Policies on Innovation
Source:
China as an Innovation Nation
Author(s):

Yu Zhou

Xielin Liu

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198753568.003.0002

This chapter summarizes the evolution of the state policies in technological innovation in the last 60 years. Between 1950 and 1980s, China’s international isolation led to the techno-nationalistic approach, prioritizing defense sectors. State controlled R&D activities were separated from production. In the 1980s, China turned to a market competitive model and embraced foreign technological transfer. In the 1980–90s, the state was directly involved in establishing state-owned or joint-venture enterprises and practiced import substitution under the rubric of “trading market for technology.” The policy, along with export promotion policy succeeded in expanding China’s production capacity, but was disappointing in improving China’s technological innovation. The “indigenous innovation” policy installed since 2006 reasserted the central role of the state in promoting innovation, but employed more diverse and flexible approaches through finance, tax, procurement, and domestic industrial standard policies, among others. Local governments and non-state firms also become more prominent players

Keywords:   techno-nationalism, government research institutes (GRIs), state-owned enterprises (SOEs), trading market for technology (TMFT), global production system (GPN), technology assimilation, indigenous innovation (zizhuchuangxin)

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