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China’s Catch-up and Innovation Model: A Case of the IT industry

In: The Rise of Technological Power in the South

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  • Xielin Liu

Abstract

In the decades during which the topic of catching up has received attention, two approaches and explanations have emerged that explain the catch-up process in the world. One approach is based on growth accounting. Using patents as an index for innovation capability, it has been used to find the key factors that determine catching-up processes in developing or newly developed countries. Furman and Hayes (2004) try to analyse this question in a qualitative way. Based on the growth model of Romer (1990), the theory of national competitive advantage (Porter, 1990) and national innovation systems (Nelson, 1993), they build a new framework and find that the factors behind catching up or standing still are the development of innovation-enhancing policies and infrastructure and the ever-increasing financial and human capital investment in innovation. However, their approach cannot explain country-specific factors in catching up. How can those factors work together to achieve the fast catch-up which has been achieved by some countries such as China?

Suggested Citation

  • Xielin Liu, 2010. "China’s Catch-up and Innovation Model: A Case of the IT industry," Palgrave Macmillan Books, in: Xiaolan Fu & Luc Soete (ed.), The Rise of Technological Power in the South, chapter 4, pages 89-106, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-27612-3_5
    DOI: 10.1057/9780230276123_5
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