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The Global Challenges of the Knowledge Economy: China and the EU

Author

Listed:
  • Huang, Can

    () (UNU-MERIT)

  • Soete, Luc

    () (UNU-MERIT)

Abstract

This paper addresses some of the challenges confronting the European Union and China as they build their knowledge economies, and their on-going and possible future actions to address such challenges. Fifty years after the creation of what became the European Union, we argue that there is an urgent need to develop a new European Lisbon Agenda, preparing the EU for globalization. A new and "outward-looking" Lisbon strategy would focus on three key areas: international trade in services, internationalization of research networking, and access to brains and talent. The paper shows that the success of the Chinese economy over the past three decades can be partially attributed to its ability to absorb globally advanced technology and huge flows of foreign investment, its large pool of knowledge and talent, and its enactment of a policy framework that provides incentives to domestic and foreign firms to innovate - a strategy very much reminiscent of Europe's own internal Lisbon agenda. To move further, China needs to overcome the obstacles of regional disparities, transform its industry and deepen industry-academy linkages, which are also unavoidable tasks for the sustainable development of Europe. We contend that the scope for comparative studies of the EU and China, for mutual learning from each other's experience - even for joint initiatives - is substantial.

Suggested Citation

  • Huang, Can & Soete, Luc, 2007. "The Global Challenges of the Knowledge Economy: China and the EU," MERIT Working Papers 2007-028, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2007028
    as

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    File URL: https://www.merit.unu.edu/publications/wppdf/2007/wp2007-028.pdf
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    References listed on IDEAS

    as
    1. Howitt, Peter & Aghion, Philippe, 2006. "Appropriate Growth Policy: A Unifying Framework," Scholarly Articles 4554121, Harvard University Department of Economics.
    2. Can Huang & Celeste Amorim & Joaquim Borges Gouveia & Mark Spinoglio & Augusto Medina, 2004. "Organization, Program and Structure: An Analysis of the Chinese Innovation Policy Framework," Working Papers de Economia (Economics Working Papers) 17, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
    3. Liu, Xiaohui & Wang, Chenggang, 2003. "Does foreign direct investment facilitate technological progress?: Evidence from Chinese industries," Research Policy, Elsevier, vol. 32(6), pages 945-953, June.
    4. Peter J Buckley & Jeremy Clegg & Chengqi Wang, 2002. "The Impact of Inward FDI on the Performance of Chinese Manufacturing Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 33(4), pages 637-655, December.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Altenburg Tilman & Leininger Julia, 2008. "Global shifts caused by the rise of anchor countries," Zeitschrift für Wirtschaftsgeographie, De Gruyter, vol. 52(1), pages 4-19, October.
    2. Mohammad Nurunnabi, 2017. "Transformation from an Oil-based Economy to a Knowledge-based Economy in Saudi Arabia: the Direction of Saudi Vision 2030," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 8(2), pages 536-564, June.
    3. Sebastian Ion CEPTUREANU & Eduard Gabriel CEPTUREANU & Alina TUDORACHE, 2015. "Considerations of Managerial Change in Knowledge Based Organization," REVISTA DE MANAGEMENT COMPARAT INTERNATIONAL/REVIEW OF INTERNATIONAL COMPARATIVE MANAGEMENT, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 16(4), pages 461-470, October.
    4. Bjørn T. Asheim & Bernd Ebersberger & Sverre J. Herstad, 2012. "MNCs between the Local and the Global: Knowledge Bases, Proximity and Distributed Knowledge Networks," Chapters, in: Martin Heidenreich (ed.), Innovation and Institutional Embeddedness of Multinational Companies, chapter 4, Edward Elgar Publishing.
    5. Duysters, Geert & Lokshin, Boris, 2007. "Determinants of alliance portfolio complexity and its effect on innovative performance of companies," MERIT Working Papers 2007-033, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).

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    More about this item

    Keywords

    Knowledge Economy; Industry-University Partnerships; Globalization; Internationalization; Highly Skilled Migration; European Union; China;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • L80 - Industrial Organization - - Industry Studies: Services - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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