Yu, J. (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics) Nijkamp, P.
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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.
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Paper provided by VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics in its series Serie Research Memoranda with number
0009.
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