Promoting Enterprise-led Innovation in China (Directions in by Chunlin Zhang, Douglas Zhihua Zeng, William Peter Mako,

By Chunlin Zhang, Douglas Zhihua Zeng, William Peter Mako, James Seward

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Extra info for Promoting Enterprise-led Innovation in China (Directions in Development) (Directions in Development, Countries and Regions)

Example text

That challenge has intensified as Chinese enterprises have become more and more exposed to international competition; a small number of leading enterprises have reached or have come very close to the global technological frontier and can no longer rely on technology transfer to maintain their competitiveness. However, in China as well as in many other developing economies, the majority of enterprises is far from the global, or even national, technological frontier and engages in innovation only to catch up (Gill and Kharas 2007, p.

A. = not applicable. 7 percent. 3 percent). Chinese enterprises invest in broadly defined innovation in a number of ways. Besides R&D spending, the most notable way is through technology import. China’s industrialization since 1949 has relied heavily on the import of foreign technology. Starting in the late 1970s, China opened up to the rest of the world and pursued an active strategy of technology import through both trade and foreign direct investment. 29 billion was related to FDI in joint ventures (NBS and MOST 2007, p.

Other Factors of Innovation China’s emphasis on R&D investment must be at an appropriate level. 4 percent in 2006, is now the highest in the developing world, higher than India’s and Brazil’s. 2 percent), China’s expenditure statistics are not comparable to those for Organisation for Economic Co-operation and Development (OECD) countries because China does not attach values to tax incentives (expenditures), whereas OECD countries do. A further increase of R&D outlays to 2 percent of GDP and more over the longer term would be desirable.

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Promoting Enterprise-led Innovation in China (Directions in by Chunlin Zhang, Douglas Zhihua Zeng, William Peter Mako,
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