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Science & Technology (S&T) is high on the Chinese policy agenda and the country aims at becoming an innovation-driven economy. Small firms have been important in technology development in other East Asian countries but the situation in Chinese small firms has been far less explored. We examine how much S&T has been accounted for by small firms and how their S&T intensity differs across industries and ownership groups. We also analyse how various firm characteristics differ over size categories and S&T status. This study is based on newly processed micro-level data provided by the National Bureau of Statistics with information on a large number of S&T indicators for manufacturing firms in China in 2000 and 2004. Our results suggest that the role of small firms in Chinese S&T is similar to that in many other countries. They account for a comparably small share of total S&T and most small firms are not engaged in any S&T. However, those small firms that do engage in S&T tend to be more S&T intensive and have a higher output in terms of patents than larger Chinese S&T firms.
The global implications of China's rise as a global actor In 2005, a senior official in the George W. Bush administration expressed the hope that China would emerge as a “responsible stakeholder” on the world stage. A dozen years later, the Trump administration dramatically shifted course, instead calling China a “strategic competitor” whose actions routinely threaten U.S. interests. Both assessments reflected an underlying truth: China is no longer just a “rising” power. It has emerged as a truly global actor, both economically and militarily. Every day its actions affect nearly every region and every major issue, from climate change to trade, from conflict in troubled lands to competition over rules that will govern the uses of emerging technologies. To better address the implications of China's new status, both for American policy and for the broader international order, Brookings scholars conducted research over the past two years, culminating in a project: Global China: Assessing China's Growing Role in the World. The project is intended to furnish policy makers and the public with hard facts and deep insights for understanding China's regional and global ambitions. The initiative draws not only on Brookings's deep bench of China and East Asia experts, but also on the tremendous breadth of the institution's security, strategy, regional studies, technological, and economic development experts. Areas of focus include the evolution of China's domestic institutions; great power relations; the emergence of critical technologies; Asian security; China's influence in key regions beyond Asia; and China's impact on global governance and norms. Global China: Assessing China's Growing Role in the World provides the most current, broad-scope, and fact-based assessment of the implications of China's rise for the United States and the rest of the world.
'This unique book offers a series of case studies about how technology creation has evolved in China. This is an in-depth perspective about the trajectory and the entrepreneurial transformations of some successful high-tech Chinese companies in different industries. The book pictures as well the roles played by government, universities and companies in fostering regional systems of innovation in different parts of China. Written by Chinese and foreign experts, those views are not partial; authors reveal an untruncated and thorough analysis.' Dominique Jolly, SKEMA Business School, France Bringing technologies to the market, thereby creating profits, high-qualified jobs and industrial upgrading is one of the means by which China can fuel its brand new growth model based on innovation and sustainability. Much is known about the mechanisms of technological entrepreneurship. But how does this happen in China? Who is doing what? Is there a 'Chinese way' to do technological entrepreneurship? This thought-provoking book provides readers with a closer look at these issues and clarifies them through a number of case studies discussed from the perspectives of both Chinese and international contributors. Technological Entrepreneurship in China offers a comprehensive and practical assessment of technological entrepreneurship in China. Exclusively based on cases, the book tackles the issues of technological entrepreneurship in China from a systemic view. In so doing the book provides an account of the main factors at work behind Chinese technological entrepreneurship and their interplay, the past and present transitions facing Chinese technology-based enterprises, and how those transitions were and are being dealt with. It offers a glimpse in a huge natural experiment that will prove insightful for both scholars and policymakers.
In contemporary China (and perhaps in most developing countries), the question was never whether, but how the state can play a role in technological development,. Evans contends that the state should assist entrepreneurship rather than simply acting as entrepreneurial police and regulators. This can be challenging. Simply identifying quality entrepreneurship (state-owned enterprises, privatized state enterprises, private entrepreneurs, foreign firms, etc.), is difficult, let alone the details of how best to evaluate the effectiveness of government assistance. This is an area the papers in this special edition diverge in their assessment of the effectiveness of state in China's high-tech market places. Fan's paper argues that Chinese state was instrumental and strategically flexible in supporting the domestic enterprises in the telecommunication sector. The roles of state differ significantly in different stages of market and enterprise development. Governments actively provided the initiation, research and development, market access and financial support in the infancy of domestic firms and later gradually withdrew direct support from firms that became self-sustaining. Instead, the state turned its focus to R&D projects that are of strategic national importance. While Fan's paper portrays the Chinese state as strategic and mostly benevolent, Zhang's paper conceptualizes the state-enterprise relations as patron-client relations with unequal power positions. He argues that China's highly concentrated and spatially biased internet service industry was a result of state control of key technological resources. The non-state actors were forced to cultivate and cater to the interests of the state whose relationships are more exploitive than supportive in nature. Zhou's paper, on the other hand, emphasizes the limited reach of the Chinese state in the domestic technology market. She focuses on China's technology standard policies. Though the state has concluded that China must get involved in global technology standards, it has encountered considerable difficulties as it seeks to coerce foreign firms to conform to China's national mandate and as much trouble coordinating unified movement among Chinese enterprises. She argues that due to the fact that the standard strategies are motivated primarily by commercial rather than ideological incentives, China's government is unable to dictate the course of action without having to deal with commercial interests that generate internal contradictions and external resistance. Sun's paper provides additional evidence demonstrating that the role of the state is limited in its ability to attract foreign R&D investment, which he argues is instead largely a product of China's growing market and enormous high-quality labor pool. Early attempts by the government to attract foreign R&D investment through preferential policies, political persuasion and other measures resulted in largely failed efforts and at best a handful of foreign showy R&D facilities designed more to publicly appease the Chinese government than to conduct serious R&D. Today, a growing domestic market and China's high-quality low cost labor supply is at the heart of foreign companies' decision to establish such R&D facilities in China. Together, the four papers, show that the role of the Chinese state is multiple and contradictory, enormously powerful, indispensable, yet not without limits. These findings allow us to interrogate and refine the model established by Evans in which we conceptualize a more complex interdependence between the state and domestic capital under a globalization context. State and enterprise relations in China appear to be dynamic in nature. While the state continues to control crucial resources and often plays favoritism toward selected indigenous firms, these favors or resources are also mediated through an intensely competitive market. The state/capital alliance is being created, but they are not firmly established as China transitional context continues to generate new actors and the rules of game are constantly contested. Though the special edition does not claim to have a consensus, we hope that it will contribute to and invite additional research on technology change in China. Many areas worth further exploration including China's national or regional innovation system, its changing regime of science and technology, and the multiple forms of foreign collaboration with Chinese local firms. As China emerges as one of the key players in global technology development, understanding its motivation, approaches, institutions, capacity and the implications becomes more pressing for the international community.
Governments in Greater China (Mainland, Taiwan, Hong Kong, and Singapore) are striving to create higher valueadded-- and homegrown--products, services, and technologies. No longer satisfied with China's role as the "world's factory," the Chinese government calls its effort "Independent Innovation." Likewise, Taiwanese firms are endeavoring to become global architects of many products, and Hong Kong and Singapore are rising to similar challenges. This book addresses topics at the heart of these efforts: - What specific actions are Greater China's governments taking to advance their respective competencies? - How do foreign firms bring technologies to them? - How adequate are the pools of talent and how are they changing? - What do patent and publication data tell us about trends in science and technology? - Why are China's research institutes being reorganized? - What has made a small set of hightech regions so productive? The authors, leading scholars and business people from Greater China, the United States, and Europe, offer valuable insights into the region's transition from workshop of the world to wellspring of innovation.
The current trade war between the US and China looks like a small piece in a much larger puzzle over world leadership in which China plays the part of the ascending challenger seeking to upset the existing balance of power. Technology and innovation seem to be Beijing’s weapons of choice in its frontal assault on Washington in sectors traditionally led by the US. China is not only acquiring technology. Its ambitions include the regulation of international trade and global governance. Just what a China-led global order would look like is still unclear, but the inherent side-effects of technology need to be meticulously assessed, as they have the potential to alter the core values of modern societies. To what extent will technology facilitate China’s rise?
Innovation is widely recognized as a major source of modern productivity growth. Indeed, it is seen as constituting a central process of economic advancement in industrialized countries. Despite this, a considerable gap still exists in knowledge and technological capability between industrialized countries and the more dynamic developing countries such as China. Small and medium sized enterprises (SMEs) are a major contributor to China's economy and SME's contribution to China's GDP is close to 60%.This book studies the strategy and mechanism of leveraging innovation capability in China's SMEs by applying the theory of Total Innovation Management (TIM), which is the new paradigm of managing innovation in enterprises developed by the Research Center for “Innovation and Development” (shortly RCID) of Zhejiang University, China. According to Eric von Hippel, MIT, RCID is the Top 10 Innovation Management research institutes in the world.Leverage Innovation Capability probes the strategy and mechanism of leverage the innovation capability in the firm, especially in China's SMEs. It analyzes how the SMEs utilize all the innovation elements in the firm, including Strategy innovation, Tech innovation, marketing innovation, organization innovation, culture innovation, innovation networking, learning and knowledge management, high involvement innovation, cooperation innovation, etc. to leverage innovation capability.
Rural enterprises have played an important role in the extraordinary success of China's economy over the last two decades. They have greatly increased off-farm employment in rural areas and brought substantially increased incomes and standards of living to many rural people. Jun Li provides a comprehensive analysis of the financing of China's rural enterprises over the reform period, and discusses the key aspects of rural enterprise development in China, including the growth of rural enterprises and enterprise-level behaviour, the role of state policy, rural financial institutions and local government. Brings new and challenging analysis to the current debate on the Chinese financial system and the financing of SMEs.
This book is a study of the development and acquisition of technology by a group of small and medium-sized rural industries in Sichuan province, China. It will be of interest to economists, developmentalists, NGOs, social scientists, and private and public consultants within the development field.