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China’s Path to Indigenous Innovation A website dedicated to monitoring the development world’s most dynamic economy and its implications for equitable and stable growth on a global scale

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Page 1: China’s Path to Indigenous Innovation A website dedicated to monitoring the development world’s most dynamic economy and its implications for equitable

China’s Path to Indigenous Innovation

A website dedicated to monitoring the development world’s most dynamic

economy and its implications for equitable and stable growth on a global scale

Page 2: China’s Path to Indigenous Innovation A website dedicated to monitoring the development world’s most dynamic economy and its implications for equitable

Indigenous Innovation

Definition: The improvement of technology transferred from abroad that enables an indigenous company to become a global competitor

Indigenous innovation builds on investment infrastructure, primarily funded by the state, and the transfer of technology from abroad through joint ventures with multinational corporations and by reverse migration of nationals.

Page 3: China’s Path to Indigenous Innovation A website dedicated to monitoring the development world’s most dynamic economy and its implications for equitable

About Us

This website has been developed by The Academic-Industry Research Network (www.theAIRnet.org) with funding from the Ford Foundation, Institute for New Economic Thinking, and the Svenska Handelsbanken Foundation.

In the early 1990s, Bill Lazonick, co-founder and president of theAIRnet, led a collaborative project on Japan’s path to indigenous innovation from the Meiji Restoration of the last decades of the 19th century to the bursting of the Japanese “bubble economy” in 1990. By that time it was becoming clear that China would follow its own path to indigenous innovation. Under Lazonick’s direction, pioneering research on the formation of China’s path was carried out by Qiwen Lu, first as a PhD student in sociology at Harvard University and then as Lazonick’s colleague at INSEAD. The result was Lu’s book, China’s Leap into the Information Age: Innovation and Organization in the Computer Industry, published by Oxford University Press in 2000.

Sadly, Qiwen Lu died of liver cancer in August 1999, just after the final book manuscript was delivered to OUP. This website on China’s Path to Indigenous Innovation is dedicated to the memory of Qiwen Lu.

Page 4: China’s Path to Indigenous Innovation A website dedicated to monitoring the development world’s most dynamic economy and its implications for equitable

About Us

Project leader: William Lazonick

Research coordinator: Yin Li

Research assistants: Dongxu Li (team leader) Qiaoling Ma Xiahui Xia

Research associates: Kaidong Feng Yifei Sun Hao Xie Yue Zhang Yu Zhou

Page 5: China’s Path to Indigenous Innovation A website dedicated to monitoring the development world’s most dynamic economy and its implications for equitable

China’s Path to Indigenous InnovationTechnology TransferInfrastructure Investment Indigenous Innovation

Physical Human Returnees FDI BOEsGOEs

DEVELOPMENT DYNAMICS the forward and backward linkages among infrastructure investment, technology transfer,

and indigenous innovation.

within each stage

Capability Accumulation Government Policy

across stages

Industry Dynamics

Business Strategy

Business Dynamics

Page 6: China’s Path to Indigenous Innovation A website dedicated to monitoring the development world’s most dynamic economy and its implications for equitable

China’s Path to Indigenous InnovationEconomic Performance

= equitable and stable economic growthIndicators of China’s economic performance

Income distributionConcentration of income at the topPovertyEmployment stabilityUnemploymentPollution