Innovation Policy in China

The Chinese government places high priority on promoting innovation in the country, viewing it as an essential element of economic and social modernization. From an early period of reliance on import of technology from the Soviet Union in the 1950s, China moved to a period of self-reliance and “reverse engineering” in the 1960s, followed by the Open Door phase since the 1980s, where the primary goal was to catch up with the most advanced countries in the world. Since 2006, China has increasingly sought to develop its own advanced technology and become an “innovation superpower.” In the following article on innovation, it is important to be aware of the fact that Chinese policymakers and academics have traditionally seen this field as part of science and technology policy, which emphasized scientific research as a vital element in the development of new technology. However, this approach tended to limit policymakers’ concern to support for research institutes and ignored the crucial role that enterprises could play in developing and implementing technology. This included the delicate balance between transfer of overseas technology and the independent development of technology by Chinese organizations. Therefore, concepts of innovation and of research and development have become very popular in China in recent decades, and policies promoting a Chinese national innovation system are prominent in government statements as well as in the academic literature. This article will focus on policies that the Chinese government has pursued to promote or regulate technology and innovation, including the controversial policy of promoting indigenous innovation. In addition, it addresses the literature on the protection of intellectual property rights, human resources for innovation, development of high-tech industries and high-tech parks, and university-industry linkages.