Insecurity and Ambition: Dual Drivers of Chinese Innovation?

Daniel Aum and Fei-Ling Wang

Defence and Peace Economics, 2024, vol. 35, issue 2, 174-191

Abstract: This article seeks to explain why some nations make greater efforts than others do to innovate. We examine for our case study the People’s Republic of China (PRC or China), which has emerged over the past several decades as a global technology leader and remains committed to bolstering its science and technology (S&T) capabilities. Applying a modified theory of ‘creative insecurity,’ we examine whether the balance between external and internal threats explains the variation in China’s innovation efforts. The hypothesis: when faced with greater threats from abroad than at home, China will have increased its innovation endeavors, measured by its innovation-related policies and research and development (R&D) intensity. Our mixed methods approach finds some support for this hypothesis. Our initial theory, however, seems unable to account for the observation that China also increased its R&D intensity even when external threats decreased and its internal security remained stable. Thus, we introduce a complementary theory of ‘creative ambition,’ which proposes that China’s efforts to innovate may not be merely defensive in nature but also offensive in intent to expand the PRC’s power and influence abroad. We conclude with potential theoretical and policy implications of this study.

Date: 2024
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DOI: 10.1080/10242694.2022.2155903

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