China’s prospects as an innovative country: an industrial economics perspective

J. Yu and Peter Nijkamp
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J. Yu: Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics

No 9, Serie Research Memoranda from VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics

Abstract: The recently announced Independent Innovation Strategy (IIS) signifies the climax of China’s technology catch-up effort during the past 30 years. This paper investigates the efficacy of, and prospects for this effort by reviewing comments from the relevant literature, by conducting a theoretical analysis based on industrial economics and by testing hypotheses with the latest empirical evidence. Our results suggest a bleak prospect for IIS if the Chinese government retains its excessive administrative protection of state-owned enterprises, and a long struggle ahead for China to finally push further into the technology frontier.

Keywords: state monopoly; R&D; independent innovation; state-owned enterprise (search for similar items in EconPapers)
JEL-codes: L12 O38 P31 (search for similar items in EconPapers)
Date: 2008
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Persistent link: https://EconPapers.repec.org/RePEc:vua:wpaper:2008-9

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