Table of Contents

Introduction: China's Journey to Innovation Xiaolan Fu, Bruce McKern and Jin Chen

PART I - The Development of Innovation in China: Theory, Policy and Practice
1.1. Capabilities Accumulation and Development: What History Tells the Theory Giovanni Dosi and Xiaodan Yu
1.2. China's Industrial Development Strategies and Policies Justin Yifu Lin and Jianjun Zhou
1.3. The Development of Innovation Studies in China Rongping Mu, Jin Chen and Wenjing Lyu
1.4. China's S&T Progress through the Lens of Patenting Gary Jefferson and Renai Jiang

PART II - Building China's Innovation Capabilities
2.1. China's National and Regional Innovation Systems Lan Xue, Daitian Li and Zhen Yu
2.2. The Great Dialectic: State versus Market in China Loren Brandt and Eric Thun
2.3. Entrepreneurship and Innovation of SMEs in China Jin Chen and Liying Wang
2.4. Financing for innovation in China Changwen Zhao and Xiheng Jiang
2.5. Innovation and Entrepreneurship Education and Its Implications for Human Capital Development in China Fang Lee Cooke

PART III - National Incentives for an Innovation Driven Economy
3.1. System Reform, Competition, and Innovation in China Weiying Zhang
3.2. Reforms of the Science and Technology Management System Zhijian Hu, Zhe Li and Xianlan Lin
3.3. Mass entrepreneurship and Mass Innovation in China Jian Gao and Rui Mu

PART IV - Developing Innovation-Favouring Institutions and Ecosystem
4.1. The Role of Clusters in the Development of Innovation Capabilities in China Tuoyu Li and Jiang Wei
4.2. China's Science-Based Innovation and Technology Transfer in the Global Context Jizhen Li, Ximing Yin and Subrina Shen
4.3. Science Parks and High-tech Zones Susan M. Walcott
4.4. Venture Capital, Angel Capital & Other Finance, IPOs and Acquisitions Lin Lin
4.5. Intellectual Property Rights Protection Can Huang and Naubahar Sharif
4.6. Innovation Elements in Traditional Chinese Culture Jin Chen and Qingqian Wu

PART V- Openness and the Acquisition of Technology and Capabilities
5.1. Innovation Strategies of MNCs in China and Their Contribution to the National Ecosystem Bruce McKern, George Yip and Dominique Jolly
5.2. Foreign Technology Transfers in China Xiaolan Fu and Jun Hou
5.3. China's International Migration: Status and Characteristics Huiyao Wang
5.4. Chinese Outward Foreign Direct Investments and Innovation Vito Amendolaigne, Xiaolan Fu, and Roberta Rabellotti
5.5. Internationalization of Chinese R&D Max von Zedtwitz and Xiaohong Iris Quan
5.6. International Innovation Collaboration in China Kaihua Chen, Ze Feng and Xiaolan Fu
5.7. Open Innovation for Development in China Jin Chen and Yufen Chen

PART VI - Innovation with Chinese Characteristics
6.1. Chinese Cost Innovation, the Shanzhai phenomenon, and Accelerated Innovation Peter Williamson
6.2. Global Supply Chains as Drivers of Innovation in China Michael Murphree and Dan Breznitz
6.3. Market Demand, Consumer Characteristics, and Innovation in Chinese Firms Hengyuan Zhu and Qing Wang
6.4. Chinese Firms' Move to the Forefront in Digital Technologies Jiang Yu and Yue Zhang
6.5. China's Financial Innovation: Process, Drive, and Impacts Liqing Zhang
6.6. The Puzzle of the Underdog's Victory: How Chinese Firms Achieve Stretch Goals Through Exploratory Bricolage Peter Ping Li, Shihao Zhou and Zhengyin Yang

PART VII - Innovation capability transition and upgrading for an inclusive and sustainable innovation system
7.1. Green Innovation in China Ping Huang and Rasmus Lema
7.2. Innovating for the Poor: The Inclusive Innovation System in China Xiaobo Wu and Linan Lei
7.3. Manufacturing Power Strategy: Advanced Manufacturing Joerg Mayer and Huifeng Sun
7.4. Facing the Future of China's Science and Technology Development Jiaofeng Pan, Guanghua Chen and Xiao Lu

Conclusion Xiaolan Fu, Bruce McKern, Jin Chen and Ximing Yin

About the Author

Professor Xiaolan Fu is the Founding Director of the Technology and Management Centre for Development (TMCD), and Professor of Technology and International Development at the University of Oxford. Her research interests include innovation and technology policy and management; trade, foreign direct investment, and economic development. She is appointed by the Secretary-General of the United Nations to the Governing Council of the Technology Bank of
the UN and to the Ten-Member High Level Advisory Group of the UN Technology Facilitation Mechanism.

Dr. Jin Chen is Professor of Department of Innovation, Entrepreneurship, and Strategy in Tsinghua SEM and Director of Research Center of Technological Innovation at Tsinghua University. He is also the member of the division of management science in council for science and technology of Minister of Education, and a former member of the Education Committee of CAE (the Chinese Academy of Engineering), China. His research areas are R&D and Innovation Management, Science,
Technology, and Innovation Policy.

Professor Bruce McKern is a researcher, instructor, and corporate advisor on innovation, strategy, and international business. He was a faculty member of the Stanford Graduate School of Business for many years and Director of the Stanford Sloan Master's Program and President and tenured Professor at the Carnegie Bosch Institute, Carnegie Mellon University. More recently he was Co-Director of the Centre on China Innovation and Professor of International Business at the China
Europe International Business School. McKern has been Dean of two Australian business schools, a Visiting Fellow at the Hoover Institution of Stanford University and a recent visiting research fellow at INSEAD, the
Technology & Management Centre for Development at Oxford University, and the Saïd Business School, Oxford. He is currently an Adjunct Professor at the University of Technology Sydney.

Reviews

China has gone from a relatively poor and isolated economy with a defective economic model to a powerhouse in a matter of four decades. This Handbook will help readers understand how that happened. In applying multiple lenses to understanding this complex journey, one learns about the role of the state and the private sectors, the key mindsets and policy frameworks, and China's experimental approach to finding pathways to progress in the absence of clear roadmaps. Readers will be left with little doubt that the China case is important, not only for its scale, but for real innovation in finding ways to accelerate innovation processes. As the world faces important challenges, in which accelerated innovation is a critical capability, the China experience covered in this volume holds important lessons for a wide range of developed and emerging economies.
*Michael Spence, Nobel Laureate and William R. Berkley Professor in Economics and Business, New York University*

At the core of the rise of China has been the formation of a strong national innovation system. In this handbook on innovation in China, sixty scholars from within and outside China analyze, how the system has been shaped by combining markets with planning, national priorities with openness and central decision-making with regional strategies. Contributions also capture important new developments in China's innovation system aiming at environmental sustainability and the promotion of digital technologies, including artificial intelligence. The handbook is a must-read for scholars, businessmen and policy makers who want to understand the history and future of China and its role in the world.
*Bengt Åke Bertil Lundvall, Professor Emeritus, Department of Business and Management, Aalborg University*