The Accelerator State: Small Firms Join the Fray of China's Techno-Industrial Drive

Alexander Brown

Institute on Global Conflict and Cooperation, Working Paper Series from Institute on Global Conflict and Cooperation, University of California

Abstract: China is creating an “accelerator state” through a multi-layered system to identify and fast track the growth of high-tech SMEs in strategic sectors. Certified high-tech SMEs enjoy unique advantages, most notably privileged access to public and private financing. In this policy brief, MERICS analyst Alexander Brown offers an analysis of the “Little Giants” program—a central feature of the accelerator state— that proves that selected firms are indeed benefiting from enhanced financing. The study also reveals flaws in its selection process. The implications for foreign actors are significant. The accelerator state aims to replace imports in key value chains, which poses a direct challenge to foreign firms. The blurred lines between state support and market forces in the scheme also make it more difficult for foreign governments to track distortionary practices and enforce fair competition.

Keywords: Social and Behavioral Sciences; china; accelerator state; robotics (search for similar items in EconPapers)
Date: 2024-04-29
New Economics Papers: this item is included in nep-ent and nep-sbm
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