1. Introduction

This chapter introduces Volume 2 and discusses the range of topics which will be discussed in the context of China and India and the political economy of change. The discussion, evaluation and analysis will focus on the factors relating to infrastructure, knowledge creation and knowledge spillovers. Investment in infrastructure in China’s Coastal regions combined with preferential policies for multinational corporations with regard to tax, profit repatriation and property rights in conjunction with concentrated infrastructure investment in the special economic zones would result in a tide of FDI leading to a transfer of knowledge. Government policy will facilitate the creation of a Triple Helix Model, highlighting the strong link between government, centres of innovation and firms. Indigenous Chinese entrepreneurship at the microlevel is a key strength of the link as well as the dynamism of institutional change. India lacks microlevel entrepreneurship and dynamic institutional change, and this constrains the impact of its economic reforms on its economic growth.