Innovation Promotion Policies And Institutional Reform In China

After more than three decades of average annual growth close to 10 percent, China's economy is transitioning to a 'new normal' of slower but more balanced and sustainable growth. Its old drivers of growth -- a growing labor force, the migration from rural areas to cities, high levels of investments, and expanding exports -- are waning or having less impact. China's policymakers are well aware that the country needs new drivers of growth. This report proposes a reform agenda that emphasizes productivity and innovation to help policymakers promote China's future growth and achieve their vision of a modern and innovative China. The reform agenda is based on the three D's: removing Distortions to strengthen market competition and enhance the efficient allocation of resources in the economy; accelerating Diffusion of advanced technologies and management practices in China's economy, taking advantage of the large remaining potential for catch-up growth; and fostering Discovery and nurturing China's competitive and innovative capacity as China approaches OECD incomes in the decades ahead and extends the global innovation and technology frontier.

After more than three decades of average annual growth close to 10 percent, China's economy is transitioning to a 'new normal' of slower but more balanced and sustainable growth. Its old drivers of growth -- a growing labor force, the migration from rural areas to cities, high levels of investments, and expanding exports -- are waning or having less impact. China's policymakers are well aware that the country needs new drivers of growth. This report proposes a reform agenda that emphasizes productivity and innovation to help policymakers promote China's future growth and achieve their vision of a modern and innovative China. The reform agenda is based on the three D's: removing Distortions to strengthen market competition and enhance the efficient allocation of resources in the economy; accelerating Diffusion of advanced technologies and management practices in China's economy, taking advantage of the large remaining potential for catch-up growth; and fostering Discovery and nurturing China's competitive and innovative capacity as China approaches OECD incomes in the decades ahead and extends the global innovation and technology frontier.

This report assesses the current status of China’s national innovation system and policies, and recommends improvements required in both the policy and institutional environments for China to succeed in promoting innovation through a market-based approach.

This volume is a selection of Chinese political scholar Xianglin Xu’s published works spanning nearly 20 years of research that explore and discuss the socio-economic transition in China under state political reform. Contextualized within the decades following the 80s, the author analyzes patterns observed from empirical studies, and breaks down the underlining reasoning, conditions and functionalities behind the incremental reform policies pushed forward by the Party and government. The collection is broken up into four sections: the first provides a general framework and theoretical / historical introduction to social transition research in the case of China; the second section discusses the underpinning logic behind political reform in China and practical concerns; the third section follows with discussions on reform policy practices within China including application and trajectory; the final section concludes with an analysis of reform within state institutional infrastructure and policy innovation.

The paper first identifies the stakeholders involved in the design and implementation of China's innovation policy and compares them with different government systems in selected Organization for Economic Co-operation and Development (OECD) countries. In order to disclose the relative strength and weaknesses inside China's innovation policy framework, we proceed to utilize policy practices in the OECD countries as a guideline to examine China's innovation policy in five categories: reform in the public S&T institutions, financial policy, business innovation support structure, human resource policy and legislative actions. Subsequently, several weak components of the Chinese innovation policy framework are identified and two of them are selected for further analysis: education and human resource policy, and protection of Intellectual Property Rights (IPR). Finally, the paper provides some priorities and possible actions for future innovation policy developments in China.

The Global Innovation Index ranks the innovation performance of 141 countries and economies around the world, based on 79 indicators. This edition explores the impact of innovation-oriented policies on economic growth and development. High-income and developing countries alike are seeking innovation-driven growth through different strategies. Some countries are successfully improving their innovation capacity, while others still struggle.

Openness and competition sparked major advances in Chinese industry. Recent policy reversals emphasizing indigenous innovation seem likely to disappoint.

This book is about where to go and what to do in China’s reform. Its comprehensive overview and economic analysis of China’s reform offers a coverage not found in other English language text. It provides an overview of China’s development and reform practice, an economic analysis of China’s market-oriented reform and a brief introduction to the theoretical origin, practices, and defects of the planned economy. In so doing, this book demonstrates that the key to the success of China’s reform lies in drawing reasonable governance boundaries between government and the market and between government and society. It further discusses the basic elements required for modernizing China’s state governance system and conducts an analysis of China’s reform and development in 13 key fields. The analysis is based on three dimensions—theoretical logic, practical knowledge, and a historical perspective. This book proposes three elements of comprehensive state governance—inclusive economic institutions; the state capacity to plan and implement policies and laws; and an inclusive and transparent civil society with democracy, the rule of law, fairness, and justice. Its analysis also features the novel application of mechanism design theory by employing the two core ideas of information and incentives and a new research methodology consisting of “three dimensions and six natures”. This book reviews and grasps China’s reform through a qualitative analysis of economic theories and an empirical analysis of statistics from a historical perspective spanning over 180 years. It is proposed to be an important reference for understanding the past, present, and future of China’s reform and teaching about the potential economic superpower. It can also serve as an essential resource for those who are interested in China's economic reform and development.

An increase in global access to goods and knowledge is transforming world-class science and technology (S&T) by bringing it within the capability of an unprecedented number of global parties who must compete for resources, markets, and talent. In particular, globalization has facilitated the success of formal S&T plans in many developing countries, where traditional limitations can now be overcome through the accumulation and global trade of a wide variety of goods, skills, and knowledge. As a result, centers for technological research and development (R&D) are now globally dispersed, setting the stage for greater uncertainty in the political, economic, and security arenas. These changes will have a potentially enormous impact for the U.S. national security policy, which for the past half century was premised on U.S. economic and technological dominance. As the U.S. monopoly on talent and innovation wanes, arms export regulations and restrictions on visas for foreign S&T workers are becoming less useful as security strategies. The acute level of S&T competition among leading countries in the world today suggests that countries that fail to exploit new technologies or that lose the capability for proprietary use of their own new technologies will find their existing industries uncompetitive or obsolete. The increased access to information has transformed the 1950s' paradigm of "control and isolation" of information for innovation control into the current one of "engagement and partnerships" between innovators for innovation creation. Current and future strategies for S&T development need to be considered in light of these new realities. This book analyzes the S&T strategies of Japan, Brazil, Russia, India, China, and Singapore (JBRICS), six countries that have either undergone or are undergoing remarkable growth in their S&T capabilities for the purpose of identifying unique national features and how they are utilized in the evolving global S&T environment.