1st Edition

Incentives for Innovation in China Building an Innovative Economy

By Xuedong Ding, Jun Li Copyright 2015
    258 Pages 18 B/W Illustrations
    by Routledge

    258 Pages 18 B/W Illustrations
    by Routledge

    In the past three decades, China has successfully transformed itself from an extremely poor economy to the world’s second largest economy. The country’s phenomenal economic growth has been sustained primarily by its rapid and continuous industrialization. Currently industry accounts for nearly two-fifths of China’s gross domestic product, and since 2009 China has been the world’s largest exporter of manufactured products. This book explores the question of how far this industrial growth has been the product of government policies. It discusses how government policies and their priorities have developed and evolved, examines how industrial policies are linked to policies in other areas, such as trade, technology and regional development, and assesses how new policy initiatives are encouraging China’s increasing success in new technology-intensive industries. It also demonstrates how China’s industrial policies are linked to development of industrial clusters and regions.

    Preface  1. Aspire to Innovate: Building an Innovative Economy  2. China’s National Innovation System  3. Fiscal Incentives for Innovation  4. Financial Policies for Innovation  5. The Public Venture Capital in China  6. Incentive for Sectoral Innovation: The Energy Sector  7. Incentives for Regional Innovation: The Yangtze River Delta  8. Performance of National Innovation System  9. Incentive for Innovation: Chinese Experiences


    Xuedong Ding is Chairman and CEO of China Investment Corporation (CIC), Beijing, China.

    Jun Li is a Senior Lecturer at Essex Business School, University of Essex, UK, and a Visiting Professor at the Business School of Jianghan University, Wuhan, China.

    'China’s economy is transforming. Some aspects of that transformation, such as the rise of the Chinese consumer, are well known. But how many of us understand how China is building an innovation economy? This book plugs an important gap in our knowledge. And, importantly, it is co-authored by a man at the heart of China’s economic policy making, Ding Xuedong, Chairman of China’s sovereign wealth fund.' – Lord James Sassoon, Chairman of China British Business Council (CBBC), UK

    'This book gives a comprehensive and insightful account of Chinese theory, experiments and practices of building an innovative country and is an important piece of work that will help the outside world understand the independent innovation policies in China. From my point of view, by improving the innovative capabilities of the whole society, China aims to adjust economic structure, transform development pattern, and build an innovation-based nation. In so doing, China's exploration, practices and experiences have facilitated opening up and cooperation, and hopefully our endeavor can contribute to the sustainable development of the world.' – Professor WAN Gang is Vice Chairman of the 11th Chinese People's Political Consultative Conference (CPPCC), Chairman of China Zhi Gong Party, and Minister of Science and Technology

    'China's economic growth has been impressive and innovation will be one of the key drivers for its future development-China has created an enabling environment for growth by encouraging public and private sector enterprises to improve competitiveness, quality and productivity by using world class technology, research and development, global standards and best practices. The authors Chairman Ding and Dr. Jun Li have effectively covered China's pursuit of a National Innovation agenda, China's current and planned innovation incentive structure and a road map for the future. China's peaceful rise will be strengthened by strong and equitable economic growth which will be reinforced with strong structural reforms, promoting science and technology and continuous innovation. The book highlights China's policies to promote innovation and is relevant for all emerging economies.' – Shaukat Azia, Prime Minister of Pakistan (2004-2007)

    'Ding Xuedong and Jun Li’s book is a refreshing comprehensive but also a deep and clear analysis of the innovation process in China. For the first time the theoretical background and the real achievements of the innovation process are analyzed both at the national, regional and sectorial level. It is an excellent instrument in order to move brain and action. A must for scholars and policy makers. Not only in China but at a global level.' – Professor Romano Prodi, Prime Minister of Italy (1996-1998 & 2006-2008), Tenth President of the European Commission (1999-2004)

    'An essential text for anyone interested in innovation and China. The authors – an academic and experienced government policy maker – have delivered insights that go beyond mere statistics. The range of sources, examples of policy impact and critical conclusions are impressive. In short, the best institutional perspective on innovation available.' – Professor David Brown, Director of Lancaster China Management Centre, Lancaster University, UK