Gabriele, Alberto and Khan, Ali Haider (2008): Enhancing technological progress in a market-socialist context:China's national innovation system at the crossroads.
Download (177Kb) | Preview
This paper analyzes the available evidence of China's S&T, R&D, and innovative capabilities, to provide an assessment of the effectiveness and potentialities of its national system of innovation (NSI) ), and to formulate some preliminary policy suggestions aimed at improving China's overall innovation strategy. Our approach focuses particularly on the evolving relationship between China's NSI and the country's overall market socialist social and economic system - both of which are developing fast and undergoing deep qualitative changes - and on related policy challenges. China's innovation strategy aims at embodying world-class best practices from technological world leaders and successful late industrializers, but is also peculiarly Chinese in at least two crucial aspects. The first is China's sheer size, which has allowed her to leapfrog to rank 2 worldwide in terms of the absolute quantitative magnitude of its NSI, at a stage when it still far lags behind all technological leaders in terms of per capita educational, technological, and research achievements. The second is China's specific form of market socialism, which has the potential of conferring her leaders an outstanding advantage in the crucial area of strategic planning, i.e. the capability to master national resources and to earmark them towards key goals accordingly to a clear set of priorities. China's goal is to engineer in a relative short period a decisive qualitative leap in her NSI, developing a systemic ability to generate world-class indigenous innovations. In addition to fostering technical progress, China's development strategy shall also take into account the challenge of establishing a model of innovation compatible with an equitable pattern of income distribution and environmental sustainability, thereby paving the way to the eventual evolution towards a higher and more developed form of socialism. This is the expressed aim of the Chinese leadership. However, the simple NSI approach is not necessarily sensitive to these strategic requirements, and therefore there is a need for more advanced analytical and planning tools. In this context, we propose to consider the utility of nonlinear models of the POLIS (positive feed back loop innovation system) class, which are suitable to chart strategically the market socialist course, as their internal logic is consistent with China's unique catch up strategy.
|Item Type:||MPRA Paper|
|Original Title:||Enhancing technological progress in a market-socialist context:China's national innovation system at the crossroads|
|Keywords:||TECHNOLOGICAL CHANGE; MARKET SOCIALISM; CHINA|
|Subjects:||P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P36 - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
P - Economic Systems > P2 - Socialist Systems and Transitional Economies > P27 - Performance and Prospects
O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights > O33 - Technological Change: Choices and Consequences; Diffusion Processes
|Depositing User:||Francesco Schettino|
|Date Deposited:||07. Oct 2008 05:55|
|Last Modified:||12. Feb 2013 18:12|
Accenture (2007), High-Performance IT: Research Results from China, in http://www.accenture.com/Global/Research_and_Insights/By_Role/HighPerformance _IT/CIOResearch/HPITChinaResearch.htm
Accenture (2008), High Performance IT 2008: There’s No Substitute for Substitution, in http://www.accenture.com/Global/Research_and_Insights/By_Role/HighPerformance _IT/CIOResearch/HPIT2008.htm
APEC (2005), International Workshop on Emerging Technologies: The Challenges of Convergence", Bangkok, Dec.14-16, 2005 http://www.apecforesight.org/emerging_tech/index.htm (last accessed June23, 2008)
Altenburg T., Schmitz H., Stamm A. (2008), “Breakthrough China’s and India’s Transition from Production to Innovation”, World Development, 2008, Vol.36 American Electronics Association (AeA), 2007, China's 15 Year Science and Technology Plan - What Does It Mean To Spawn "Indigenous Innovation?", AeA Competitiveness Series, Vol.14, in http://www.aeanet.org/publications/AeA_CS_China_15_Year_Plan.asp
Arora A., Ceccagnoli M., and , Wesley M. Cohen W. (2003), R&D and the patent premium, NBER Working Paper Series - National Bureau of Economic Research, 2003 January; (January)(9431)
Brécard D., Fougeyrollas A., Le Mouël P., , Lemiale L., , Zagamé P. (2006), Macro- economic consequences of European research policy: Prospects of the Nemesis model in the year 2030, Research Policy, Volume 35, Issue 7, September 2006, Pages 910- 924
Camerer C., Loewenstein G., and Prelec D., (2005), “Neuroeconomics: How neuroscience can. inform economics,”Journal of Economic Literature, Vol. XLIII, March
Chan S., (2007), China’s SOEs to start paying dividends, Moody’s Economy.com economist, December 13:
Chinaview (2007), China's SOEs to see profits surge 30% this year, in www.chinaview.cn 2007-12-18 16:47:07.
China.org.cn, (2007), by Chen Lin, December 12, MOF regulates SOE's dividends ratio to the government
China Academy of Sciences (CAS), (2008), Construction of China's National Innovation System, in http://english.cas.ac.cn/eng2003/news/detailnewsb.asp?InfoNo=20966
China Daily (2007), June 5, SOE Dividends Should Benefit the Public
Chung O., (2007), China's phone makers in speed dial mode Asia Times nov 3 2007http://www.atimes.com/atimes/China_Business/IK03Cb01.html
Cochrane (2005), Commentary , Posted on ZDNet News: Apr 7, 2005, in http://news.zdnet.com/2100-9589_22-5658944.html
David P.A., Hall B.H., and Toole A., (2000), , Is public R&D a complement or substitute for private R&D? A review of the econometric evidence, Research Policy, Volume 29, Issues 4-5, April 2000, Pages 497-529
Dahlman C.J. (2007), China and India: Emerging Technological Powers, , . Issues in Science and Technology. Washington: Spring 2007. Vol. 23, Iss. 3
Dodson B. (2008), China SOEs Getting Lean and Mean March 17th, 2008 by This is China!
Dyer G. and McGregor R., (2008), China's champions: Why state ownership is no longer proving a dead hand, Financial Times, March 16.
Ernst H. (1998), Industrial research as a source of important patents Research Policy, Volume 27, Issue 1, May 1998, Pages 1-15
Felipe, J. (1999) ‘Total factor Productivity growth in East Asia: A Critical Survey’, Journal of Development Studies, 35(4): 1–41.
Felipe J. c, Editha L. E., and Xiaoqin Fan E., (2008), The Diverging Patterns of Profitability, Investment and Growth of China and India During 1980–2003, World Development 36- 5, May.
Foley D.and T. Michl T.,, (1999), Growth and distribution, Harvard University Press, Cambridge, MA and London (1999).
Gabriele A ., (1993), Il ruolo delle imprese rurali nello sviluppo industriale cinese (The Role of Rural Enterprises in China's Industrial Development), Development/Sviluppo, 1993, University of Rome.
Gabriele A., (2002), S&T Policies and Technical Progress in China's Industry, Review of International Political Economy, Vol.9, No.2, Summer, 2002.
Gabriele, A and Schettino, F. (2008): Market Socialism as a D Socioecionomic formation internal to the Modern Model of Production, MPRA Paper No. 7942, posted 27. March 2008 / 11:02 Online at http://mpra.ub.uni-muenchen.de/7942/
Ghose A., Majid N., Ernst C. (2008), The Global Employment Challenge, ILO, (2008).
Goel R.K. and. Hsieh E.T., (2006), On coordinating environmental policy and technology policy, Journal of Policy Modelling, Volume 28, Issue 8, November 2006.
Guangzhou Hu, A., (2002), Ownership, Government R&D, Private R&D, and Productivity in Chinese Industry Journal of Comparative Economics Volume 29, Issue 1, March 2001, Pages 136-157.
Haiyan W., Yuanlong Z., Kaiyuan I., (2006), , Universities in NIS of China: evolution, characteristics and challenges. National Research Center for S&T for development, PRC, in www.fpi.lu.se/_media/en/research/china-power-point-havana-06.pdf
HIKPA (Hong Kong Institute of Certified Public Accountants)), 2006, A Plus Intelligence report, March.
Hodson S.., (2008), The Decline & Fall of the West’s Internet Age posted on January 18, 2008 in http://www.winextra.com/2008/01/18/the-decline-fall-of-the-wests- internet-age/
Hong, W., (2006), "Decline of the Center: the Decentralizing Process of Knowledge Transfer of Chinese Universities from 1985-2004" Paper presented at the annual meeting of the American Sociological Association, Montreal Convention Center, Montreal, Quebec, Canada, Aug 10, 2006, Online in <http://www.allacademic.com/meta/p103725_index.html>
Hsiung, D. I., (2002), An evaluation of China's S&T System and its impact on the research community,, special Report for the environment, S&T Section,US Embassy, Beijing, China
Hu A. G. and . Jefferson G.H. (2004), Returns to research and development in Chinese industry: Evidence from state-owned enterprises in Beijing, China Economic Review Volume 15, Issue 1, 2004, Pages 86-107
Hung S-W., (2008), Development and innovation in the IT industries of India and China, Technology in Society, In Press, Corrected Proof, Available online 12 February 2008
Kash, D.E., Augur, R.N., and Li, N. (2004), An Exceptional Development Pattern, Technological Forecasting and Social Change, 71 (8), 777-797
Kenning P. and Plassmann H., (2004), NeuroEconomics, University of Muenster, in http://184.108.40.206/eps/exp/papers/0412/0412005.pdf
Khan HA (2008a). "Building an Innovative Economy through Managed Creative Destruction: A Theory with Applications to South Korea". Accessed April 2008 at: http://econpapers.repec.org/paper/pramprapa/7713.htm
Khan ,H.A.(2008b)"Making Globalization Work: Towards Global Economic Justice", Cosmopolis, May 2008 http://ideas.repec.org/p/pra/mprapa/7864.html
Khan,H. A.(2008c) "China's Development Strategy and Energy Security", WIDER research Paper, in http://www.wider.unu.edu/publications/working-papers/research- papers/2008/en_GB/research_papers_2008/
Khan, H. A. (2005), Case Studies in Globalization, Convergence, and Superconvergence of Emerging Technologies presentation at the International Workshop on Emerging Technologies: The Global Challenges of Convergence, Bangkok,14-15 Dec.2005. http://www.apecforesight.org/emerging_tech/docs/HaiderPresentation_Dec05.ppt
Khan H., (2004a) Innovation and Growth in East Asia:The Future of Miracles, Palgrave/Macmillan, Houndmills, UK
Khan, H. A (2004b) “Local community investments, Sen’s capabilities approach and regional development: a conceptual approach based on a social accounting matrix”, IJEB, April, 2004
Khan, H. A (2002) “Innovation and Growth in a Schumpeterian Model”, Oxford Development Studies, Vol. 30, no. 3, 2002: 289-306.
Khan, H. A (1998).Technology, Development and Democracy: Limits to the National System of Innovation in the Age of Postmodernism, Cheltenham,UK:Edward Elgar
Khan, H. A -------- (1997). Technology, Energy and Development: The South Korean Transition, Cheltenham, UK: Edward Elgar
Knell M., Fagerberg J., Srholec M., (2007): The competitiveness of nations Why some countries prosper while others fall behind In World Development, Vol 3 issue 10
Kuijs L., , Mako W., , and Zhang C., (2005), SOE Dividends: How Much and to Whom? World Bank’s Beijing Office, in http://siteresources.worldbank.org/INTCHINA/Resources/318862-1121421293578/SOE_En_bill.pdf
Lee K., (2006 b) , China's Economic Catch-up: Washington Consensus or the Bejing Consensus, Selected Papers from the 2nd World Forum on China Studies (Abstracts), Panel 2, Exploration into the Theory and Practice of the Mode of China’s Development, in http://unpan1.un.org/intradoc/groups/public/documents/APCITY/UNPAN024930.pdf
Lee, Keun A., (2006), “Understanding Reform in 6 Asian Countries: Washington Consensus vs. East Asian Sequencing,” J. Fanelli and G. McMahon, eds. Understanding Market Reforms Vol. 2: Palgrave.
Lee, K., Hanh D., and Yifu Lin J., (2002), : "Is China following the East Asian Model? A Comparative Institutional Analysis Perspective" China Review 2: no.1.
Li-Hua R., (2008), China's science and technology capacity building: global perspective and challenging issues (book review), Journal: Journal of Technology Management in China Vol : 3 Issue: 1
Li-Hua R. and Simon D., (2007), Benchmarking China firm competitiveness: a strategic framework, Journal of Technology Management in China. Bradford: 2007. Vol. 2, Iss. 2.
Li K., Hu L., Chi J., (2007), Major sources of production improvement and innovation growth in Chinese enterprises, Pacific Economic Review, Vol. 12, Iss. 5.
Li Y., Liu Y., and Ren F. (2006), Product innovation and process innovation in SOEs: evidence from the Chinese transition, The Journal of Technology Transfer, Vol.32, Issue 1.
Liu X. and White S., (2001), Comparing innovation systems: a framework and application to China’s transitional context, Research Policy Vol.30, Issue 7, No.30, pp. 1091–1114.
Lundin N. and and Sylvia Schwaag Serger S., (2007), Globalization of R&D and China Empirical Observations and Policy Implications IFN Working Paper No. 710, 2007
Ma W., (2004), From Berkeley to Beida and Tsinghua: The development and governance of public research universities in the US and C, Beijing, Educational science Press.
Marx K., (1975), Critique of the Gotha Program, http://www.marxists.org/archive/marx/works/1875/gotha/index.htm
Mayberry T., Wang S., and Suh B., (2006), Special Report: China III: Getting IT Right the First Time - A Bold New Agenda for China's CIOs Outlook Journal, May 2006
Ministry of Science and Technology of China (MOST), (2005), Documents of state policies on science and technology.
Motohashi K., (2005), R&D of Multinationals in China: Structure, Motivations and Regional Difference, RIETI Discussion Paper Series 06-E-005, in http://www.rieti.go.jp/jp/publications/dp/06e005.pdf
Motohashi K. and Kazuyuki X., (2007), China’s innovation system reform and growing industry and science linkages, Research Policy, Volume 36, Issue 8, October 2007, Pages 1251-1260.
Nelson, R. (1964), "Aggregate Production Functions and Medium-range Growth Projections," American Economic Review, September, 54, 575-606.
Nelson, R. (1968), “A Diffusion Model of International Productivity Differences in Manufacturing Industry,” American Economic Review, 58:1219-48. 37 Nelson, R. (1980), 'Production Sets, Technological Knowledge, and R and D: Fragile and Overworked Constructions for Analysis of Productivity Growth?', American Economic Review, 70: 62-7.
Nelson, R. (1981), 'Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures', Journal of Economic Literature, 19/3: 1029 64.
Nelson, R. (1989), “What is Private and What is Public about Technology?” Science, Technology and Human Values, 14(3): 229-41.
Nelson, R. (1992), “U.S. Technological Leadership: Where Did It Come from and Where Did It Go?” Scherer, Frederick M. and Mark Perlman (1992), Entrepreneurship Technological Innovation. and Economic Growth: Studies in the Schumpeterian Tradition Ann Arbor: The University of Michigan Press: 25-50.
Nelson, R. (1993), “Technical Change as Cultural Evolution,” Ross Thomson, ed., Learning and Technological Change. New York: St. Martin’s Press.
Nelson, R. ed. (1993), National Innovation Systems: A Comparative Analysis. Oxford: Oxford University Press.
Nelson, R. (1994), “What has been the Matter with Neoclassical Growth Theory,” in G. Silverberg and Luc Soete, eds. (1994), The Economics of Growth and Technical Change: Technologies, Nations, Agents, Aldershot, U.K.: Edward Elgar: 290-324.
Nelson, R. (1995), “Recent Evolutionary Theories About Economic Change” Journal of Economic Literature, pp. 48-90.
Nelson, Richard R and S. Winter (1973), “Recent Exercises in Growth Accounting: New Understanding or Dead End?”, American Economic Review, 73:462-468.
Nelson, R. (1974), 'Neoclassical vs. Evolutionary Theories of Economic Growth: Critique and Prospectus', Economic Journal, 84: 886-905.
Nelson, R. (1977), "In Search of a Useful Theory of Innovation." Research Policy 6: 36-76.
Nelson, R. (1982), An Evolutionary Theory of Economic Change, Cambridge: MA, Harvard University Press.
OECD (2006), Science, Technology and Industry Outlook 2006
Pasinetti L., (1962), Rate of Profit and Income Distribution in Relation to the Rate of Economic Growth ,The Review of Economic Studies, Vol. 29, No. 4 (Oct., 1962).
Research Technology Management (RTM), (2007), China's 15 Year Science and Technology Plan, Arlington:Nov/Dec 2007. Vol. 50, Iss. 6, p. 70 (1 pp.)
Ren L., , L., Koos Krabbendam K., de Weerd-Nederhof P., (2006), Innovation practices success in China: the use of innovation mechanisms in Chinese SOEs, Journal of Technology Management in China, Volume: 1 Issue: 1 Page: 76-91
Sen A., (1999),. Development As Freedom. New York: Knopf.
Shanghai Daily (2007), September 14, SOE Dividends to Bolster Social Security Funds).
Shaomin Li S.and Judy Jun Wu J. (2007), Why China Thrives Despite Corruption, Far Eastern Economic Review. Hong Kong: Apr 2007. Vol. 170, Iss. 3;
Suh B. (ed.), (2008), American companies are falling behind in technology,. Financial Times. London (UK): Feb 13, 2008. pg. 9
Trigram.wordpress.com (2007), Phone design: innovation on fast-forward? http://trigram.wordpress.com/2007/11/03/phone-design-innovation-on-fast-forward/
Tsai K. (2008), China's Complicit Capitalists, Far Eastern Economic Review, (Vol. 171, Iss. 1, 2008).
Wang, J-H., (2006), China's dualist model on technological catching up: a comparative perspective: The Pacific Review, Volume 19, Number 3, September
Wu W., (2007), Building Research Universities for Knowledge Transfer - The case of China, in Shahid Y. and Nabeshima K., (eds), 2007, How Universities Promote Economic Growth, The World Bank, Washington DC
Xia L. and Li S., (2008), The Roles and Performance of State Firms and Non-State Firms in China's Economic Transition, World Development., Vol. 36, Iss. 1.
Zeng D.Z., and Wang S., (2007), China and the Knowledge Economy: Challenges and Opportunities, World Bank Policy Research Working Paper 4223, May 2007.
Zhang J., (2003), The development of high-tech enterprises in China's universities, Wuhan, China, Huazong Science and Technology University Press.