Innovation Capacity and Economic Development: China and India
AbstractBoth China and India, the emerging giants in Asia, have achieved significant economic development in recent years. China has enjoyed a high annual GDP growth rate of 10 per cent and India has achieved an annual GDP growth rate of 6 per cent since 1981. Decomposing China and India?s GDP growth from 1981 to 2004 into the three factors? contribution reveals that technology has contributed significantly to both countries? GDP growth, especially in the 1990s. R&D outputs (high-tech exports, service exports, and certified patents from USPTO) and inputs (R&D expenditure and human resources) further indicate that both countries have been very committed to R&D and their output is quite efficient. Both governments have played an essential role in transforming their national innovation systems so that they can be more adaptable to economic development. The main focus of their reforms has been to link the science sector with the business sector and to provide incentives for innovation activities. Balancing import of technology and indigenous R&D effort is another major theme. Innovation capability development has become more and more critical to the success of biofirms in India and China. Institutional factors have great influence on choice of innovation at the firm level, i.e., the decision at firm level in terms of indigenous R&D or import of technology. Nevertheless, limited financial resources and insufficiently qualified human resources remain two major challenges for domestic companies in both countries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number RP2008/31.
Length: 22 pages
Date of creation: 2008
Date of revision:
China; India; innovation capability; domestic companies; ICT; biotech;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-29 (All new papers)
- NEP-CNA-2008-09-29 (China)
- NEP-CWA-2008-09-29 (Central & Western Asia)
- NEP-DEV-2008-09-29 (Development)
- NEP-INO-2008-09-29 (Innovation)
- NEP-KNM-2008-09-29 (Knowledge Management & Knowledge Economy)
- NEP-TRA-2008-09-29 (Transition Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Young, Alwyn, 1995. "The Tyranny of Numbers: Confronting the Statistical Realities of the East Asian Growth Experience," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 641-80, August.
- Deepak Lal, 1993.
"India and China: Contrasts in Economic Liberalization,"
UCLA Economics Working Papers
706, UCLA Department of Economics.
- Lal, Deepak, 1995. "India and China: Contrasts in economic liberalization?," World Development, Elsevier, vol. 23(9), pages 1475-1494, September.
- Kazuyuki Motohashi & Xiao Yun, 2005.
"China's Innovation System Reform and Growing Industry and Science Linkages,"
05011, Research Institute of Economy, Trade and Industry (RIETI).
- Motohashi, Kazuyuki & Yun, Xiao, 2007. "China's innovation system reform and growing industry and science linkages," Research Policy, Elsevier, vol. 36(8), pages 1251-1260, October.
- Aggarwal, Aradhna, 2000. "Deregulation, technology imports and in-house R&D efforts: an analysis of the Indian experience," Research Policy, Elsevier, vol. 29(9), pages 1081-1093, December.
- Mahmood, Ishtiaq P. & Singh, Jasjit, 2003. "Technological dynamism in Asia," Research Policy, Elsevier, vol. 32(6), pages 1031-1054, June.
- Klimis Vogiatzoglou, 2009. "Determinants of Export Specialization in ICT Products: A Cross-Country Analysis," Working Papers 2009.3, International Network for Economic Research - INFER.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruck Tadesse).
If references are entirely missing, you can add them using this form.