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An institutionalized policy-making mechanism: China’s return to techno-industrial policy

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  • Chen, Ling
  • Naughton, Barry

Abstract

Technology and innovation policy in China shifted dramatically in 2003, returning to “techno-industrial policy” that involves direct government interventions to shape specific industrial sectors. This article precisely documents the shift and shows that it occurred through two successive waves of policy change. This policy shift was formulated through a policy process that, like others in China, has become increasingly institutionalized. The article introduces a general four-phase model that describes the structured policy process in China. In the case of innovation policy, this structured policy process facilitated a shift to a substantially more interventionist policy.

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  • Chen, Ling & Naughton, Barry, 2016. "An institutionalized policy-making mechanism: China’s return to techno-industrial policy," Research Policy, Elsevier, vol. 45(10), pages 2138-2152.
    • Handle: RePEc:eee:respol:v:45:y:2016:i:10:p:2138-2152
    DOI: 10.1016/j.respol.2016.09.014
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    Cited by:

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    2. Prema-chandra Athukorala, 2021. "Asian economic development: A primer," Departmental Working Papers 2021-07, The Australian National University, Arndt-Corden Department of Economics.
    3. Yang Gao, 2022. "The Belt and Road Initiative and cascading innovation in China’s domestic railway ecosystem," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 236-258, June.
    4. Mao, Jie & Tang, Shiping & Xiao, Zhiguo & Zhi, Qiang, 2021. "Industrial policy intensity, technological change, and productivity growth: Evidence from China," Research Policy, Elsevier, vol. 50(7).
    5. Guo, Yan & Zhang, Haochen, 2022. "Spillovers of innovation subsidies on regional industry growth: Evidence from China," Economic Modelling, Elsevier, vol. 112(C).
    6. Rong, Zhao & Wu, Xiaokai & Boeing, Philipp, 2017. "The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms," Research Policy, Elsevier, vol. 46(9), pages 1533-1551.
    7. Junguo Shi & Bert M. Sadowski & Xinru Zeng & Shanshan Dou & Jie Xiong & Qiuya Song & Sihan Li, 2023. "Picking winners in strategic emerging industries using government subsidies in China: the role of market power," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-8, December.
    8. Xing Shi & Yanrui Wu & Dahai Fu & Xiumei Guo & Huaqing Wu, 2019. "Effects of National Science and Technology Programs on Innovation in Chinese Firms," Asian Economic Papers, MIT Press, vol. 18(1), pages 207-236, Winter/Sp.
    9. Chen, Yenn-Ru & Jiang, Xiaoquan & Weng, Chia-Hsiang, 2020. "Can government industrial policy enhance corporate bidding? The evidence of China," Pacific-Basin Finance Journal, Elsevier, vol. 60(C).
    10. Kejing Chen & Qiaoshuang Meng & Yutao Sun & Qingqing Wan, 2024. "How does industrial policy experimentation influence innovation performance? A case of Made in China 2025," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.
    11. Wang, Yufei & Liao, Zhongju, 2023. "Functional industrial policy mechanism under natural resource conflict: A case study on the Chinese new energy vehicle industry," Resources Policy, Elsevier, vol. 81(C).
    12. Lutao Ning & Dylan Sutherland & Xiaolan Fu, 2017. "Local context and innovation in China," Asian Business & Management, Palgrave Macmillan, vol. 16(3), pages 117-129, July.
    13. Neilson, Jeffrey & Dwiartama, Angga & Fold, Niels & Permadi, Dikdik, 2020. "Resource-based industrial policy in an era of global production networks: Strategic coupling in the Indonesian cocoa sector," World Development, Elsevier, vol. 135(C).
    14. Chen, Ling & Yang, Wenhui, 2019. "R&D tax credits and firm innovation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 233-241.
    15. Giorgio Prodi & Francesco Nicolli & Federico Frattini, 2020. "Embeddedness and local patterns of innovation: evidence from Chinese prefectural cities," Economic Complexity and Evolution, in: Andreas Pyka & Keun Lee (ed.), Innovation, Catch-up and Sustainable Development, pages 283-307, Springer.
    16. Ha-Joon Chang & Kiryl Zach, 2018. "Industrial development in Asia: Trends in industrialization and industrial policy experiences of developing Asia," WIDER Working Paper Series wp-2018-120, World Institute for Development Economic Research (UNU-WIDER).
    17. Lee Branstetter & Guangwei Li, 2023. "The Challenges of Chinese Industrial Policy," NBER Chapters, in: Entrepreneurship and Innovation Policy and the Economy, volume 3, pages 77-113, National Bureau of Economic Research, Inc.
    18. Barry Naughton, 2017. "The Current Wave of State Enterprise Reform in China: A Preliminary Appraisal," Asian Economic Policy Review, Japan Center for Economic Research, vol. 12(2), pages 282-298, July.

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