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Incentive systems for technical change: the Chinese system in transition

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  • Liu Wei

Abstract

This article examines the incentive system for generation of technical change in Chinese industry, focusing on two distinct periods: (1) the planned economy up to the late 1970s, and (2) the preliminary market economy of the 1980s and the first half of the 1990s. The analysis indicates that there were inconsistent pressures on enterprises for technical change during the planned economy period. It further indicates that, during the preliminary market economy period, the government has mainly focused on reward-type incentives, which were later supplemented with market mechanism and competition on equal terms. Therefore, the article argues that the government should still make efforts to establish a complete system, which both offers rewards and exerts pressures for technical change.

Suggested Citation

  • Liu Wei, 2001. "Incentive systems for technical change: the Chinese system in transition," International Journal of Entrepreneurship and Innovation Management, Inderscience Enterprises Ltd, vol. 1(2), pages 157-177.
    • Handle: RePEc:ids:ijeima:v:1:y:2001:i:2:p:157-177
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    Cited by:

    1. Ingo Liefner & Stefan Hennemann & Lu Xin, 2006. "Cooperation in the Innovation Process in Developing Countries: Empirical Evidence from Zhongguancun, Beijing," Environment and Planning A, , vol. 38(1), pages 111-130, January.
    2. Veland Ramadani & Hyrije Abazi-Alili & Léo-Paul Dana & Gadaf Rexhepi & Sadudin Ibraimi, 2017. "The impact of knowledge spillovers and innovation on firm-performance: findings from the Balkans countries," International Entrepreneurship and Management Journal, Springer, vol. 13(1), pages 299-325, March.
    3. Hennemann Stefan & Liefner Ingo, 2006. "Kooperations- und Innovationsverhalten von chinesischen Hochtechnologieunternehmen," ZFW – Advances in Economic Geography, De Gruyter, vol. 50(1), pages 58-71, October.

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