6. Tales of Two Types of Regional Integration—The UK, the EU and China

This chapter presents a comparative case study was carried out using Jiangsu, Hubei and Gansu provinces in order to contrast the similarities and differences between Coastal, Central and Western China with regard to the formation innovation systems. In addition to these features, it became apparent that in Jiangsu town and village enterprises (TVEs) had evolved more significantly in the Coastal region, in the pre-reform years, than in the Western and Central regions. The Coastal region was, therefore, better placed to benefit from the post-1978 economic reforms due to some people within this region having gained entrepreneurial experience by having previously worked for TVEs. Moreover, R&D activity is better funded in the Coastal regions by government and LMEs than it is in the Western and Central regions. However, despite the increasing importance of the Coastal region in the reform years, the agricultural sector has not diminished in capacity in a Coastal province like Jiangsu, but only blossomed.