IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/10695.html
   My bibliography  Save this paper

Enhancing technological progress in a market-socialist context:China's national innovation system at the crossroads

Author

Listed:
  • Gabriele, Alberto
  • Khan, Ali Haider

Abstract

This paper analyzes the available evidence of China's S&T, R&D, and innovative capabilities, to provide an assessment of the effectiveness and potentialities of its national system of innovation (NSI) ), and to formulate some preliminary policy suggestions aimed at improving China's overall innovation strategy. Our approach focuses particularly on the evolving relationship between China's NSI and the country's overall market socialist social and economic system - both of which are developing fast and undergoing deep qualitative changes - and on related policy challenges. China's innovation strategy aims at embodying world-class best practices from technological world leaders and successful late industrializers, but is also peculiarly Chinese in at least two crucial aspects. The first is China's sheer size, which has allowed her to leapfrog to rank 2 worldwide in terms of the absolute quantitative magnitude of its NSI, at a stage when it still far lags behind all technological leaders in terms of per capita educational, technological, and research achievements. The second is China's specific form of market socialism, which has the potential of conferring her leaders an outstanding advantage in the crucial area of strategic planning, i.e. the capability to master national resources and to earmark them towards key goals accordingly to a clear set of priorities. China's goal is to engineer in a relative short period a decisive qualitative leap in her NSI, developing a systemic ability to generate world-class indigenous innovations. In addition to fostering technical progress, China's development strategy shall also take into account the challenge of establishing a model of innovation compatible with an equitable pattern of income distribution and environmental sustainability, thereby paving the way to the eventual evolution towards a higher and more developed form of socialism. This is the expressed aim of the Chinese leadership. However, the simple NSI approach is not necessarily sensitive to these strategic requirements, and therefore there is a need for more advanced analytical and planning tools. In this context, we propose to consider the utility of nonlinear models of the POLIS (positive feed back loop innovation system) class, which are suitable to chart strategically the market socialist course, as their internal logic is consistent with China's unique catch up strategy.

Suggested Citation

  • Gabriele, Alberto & Khan, Ali Haider, 2008. "Enhancing technological progress in a market-socialist context:China's national innovation system at the crossroads," MPRA Paper 10695, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:10695
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/10695/1/MPRA_paper_10695.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Gabriele, Alberto & Schettino, Francesco, 2007. "Market Socialism As A Distinct Socioeconomic Formation Internal To The Modern Mode Of Production," MPRA Paper 7942, University Library of Munich, Germany.
    2. Goel, Rajeev K. & Hsieh, Edward W.T., 2006. "On coordinating environmental policy and technology policy," Journal of Policy Modeling, Elsevier, vol. 28(8), pages 897-908, November.
    3. Keun Lee & Donghoon Hahn & Justin Lin, 2001. "China and the East Asian Model A 'Comparative Institutional Analysis'Perspective," Working Paper Series no41, Institute of Economic Research, Seoul National University.
    4. Nelson, Richard R. & Winter, Sidney G., 1993. "In search of useful theory of innovation," Research Policy, Elsevier, vol. 22(2), pages 108-108, April.
    5. Nelson, Richard R, 1973. "Recent Exercises in Growth Accounting: New Understanding or Dead End?," American Economic Review, American Economic Association, vol. 63(3), pages 462-468, June.
    6. Zeng, Douglas Zhihua & Wang, Shuilin, 2011. "China and the knowledge economy : challenges and opportunities," Policy Research Working Paper Series 4223, The World Bank.
    7. Ke Li & Yifan Hu & Jing Chi, 2007. "Major Sources Of Production Improvement And Innovation Growth In Chinese Enterprises," Pacific Economic Review, Wiley Blackwell, vol. 12(5), pages 683-710, December.
    8. Nelson, Richard R, 1981. "Research on Productivity Growth and Productivity Differences: Dead Ends and New Departures," Journal of Economic Literature, American Economic Association, vol. 19(3), pages 1029-1064, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Khan, Haider, 2011. "A Broader Framework for Analyzing the US-China Problems with an Emphasis on Exchange Rates," MPRA Paper 40117, University Library of Munich, Germany.
    2. Khan, Haider A., 2012. "National Innovation Systems and Regional Cooperation in Asia: Challenges and Strategies from a Study of China," MPRA Paper 40118, University Library of Munich, Germany.
    3. Chiara Franco & Riccardo Leoncini, 2013. "Measuring China's innovative capacity: a stochastic frontier exercise," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 22(2), pages 199-217, March.

    More about this item

    Keywords

    TECHNOLOGICAL CHANGE; MARKET SOCIALISM; CHINA;

    JEL classification:

    • P36 - Economic Systems - - Socialist Institutions and Their Transitions - - - Consumer Economics; Health; Education and Training; Welfare, Income, Wealth, and Poverty
    • P27 - Economic Systems - - Socialist Systems and Transition Economies - - - Performance and Prospects
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:10695. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.