China’s Path to innovation (‘How’ )

China’s Path to innovation (‘How’ )

• China’s Path to innovation (‘How’ )

• The evolution of China’s path to innovation: foreign vs indigenous innovation

• System building: Open national innovation system

• Achieving: Capabilities, incentives, institutions

• Conclusions: ONIS & Innovation diagnosis

• Policy implications for other countries

The Evolution of

• The Evolution of

• China’s Path to Innovation

Different roles of foreign vs indigenous innovation in different industries

• Different roles of foreign vs indigenous innovation in different industries

• The dual role of Chinese universities: knowledge creation and assist diffusion and absorption

• The role of foreign universities & international collaboration for radical innovation

• Open Innovation a response to risks and constraints (differ by firms of different ownership)

System Building

• System Building

• The open national innovation system (ONIS)

• in the age of globalisation:

• Openness at both national and firm level

National innovation system framework

• National innovation system framework

Embedding NIS into the global innovation system

• Embedding NIS into the global innovation system

• Creating linkages:

• - Trade

• - FDI

• - Human mobility

• - University – industry linkage

• - Public-private partnership & the role of the state

• Firms can map out their innovation ecosystem by focusing on industry and including vertical and horizontal linkages

Foster indigenous innovation while opening up to external knowledge, resources and markets.

• Foster indigenous innovation while opening up to external knowledge, resources and markets.

• Dual knowledge sources and uses a dynamic combination that evolves over time.

• Multiple driving forces: the state, the private sector and the MNEs. Uses a combination of market and state for different functions and at different stages of innovation.

• Multiple knowledge diffusion channels. Uses a combination of knowledge sourcing channels, which is again dynamic.

Japan (MNEs)

• Japan (MNEs)

• South Korea (Foreign technical assistance and returnees)

• Taiwan (Foreign technical assistance and returnees)

Achieving high performance:

• Achieving high performance:

• Capabilities, incentives and institutions

Capabilities: quality, creativeness

• Capabilities: quality, creativeness

• Incentives: macro, micro

• Institutions

• Interplay and coordination

• Higher degree of openness

• Impact: environment & inclusiveness

Conclusions

• Conclusions

China’s experiences suggest upgrading using an ONIS

• China’s experiences suggest upgrading using an ONIS

• Uses indigenous innovation and foreign technology transfer at all stages of development, though with different emphasis

• For middle income countries’, more targeted, proactive international knowledge sourcing : OFDI, highly skilled migrants, international collaboration, foreign universities

• Different roles of the state and market at different parts of the innovation chain

China’s experiences also suggest that

• China’s experiences also suggest that

• in addition to investment & openness,

• incentives & Institutions are also very important.

• Hence suggesting

• Innovation diagnosis as a policy tool

Moving towards the right direction; but details are the monsters

• Moving towards the right direction; but details are the monsters

• Future: actions in 3 dimensions

• System and capabilities building

• - resources, skills, linkages

• - Solutions: invest, talents, open innovation, M&A, policy

• Set incentives right

• - Financial and non-financial incentives, monitoring

• Institutions development

• -IPR, incubators/sci parks, regulations, SMEs /high tech IPOs

South-South technology transfer

• South-South technology transfer

• How to participate global value chains & role of EPZs

• Orientations to sustainability in technology and upgrading strategy

• Consequences on inequality and inclusive innovation

Source: Ma and Van Assche (2010)

• Source: Ma and Van Assche (2010)