Balanced Development: The Challenge for Science, Technology and Innovation Policy

This chapter focuses upon science, technology and innovation policy in China. It argues that production in China is predominantly concentrated along the eastern seaboard but innovation appears unevenly spread within this region. An analysis of indicators of innovation by province shows a pattern of development toward two different types of innovation system: a strong science based system predominantly linked to public institutions and state enterprises, and a commercial system, more responsive to market forces, less science-intensive but more closely linked to the business sector and non-state enterprises. An implication is that unless the two systems become better aligned, market-driven firms will have little choice but to forge alternative innovation alliances with foreign firms.