Complementary innovation systems for catching-up in China
Tang, Ming Feng
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This paper discusses what kind of national innovation system (NIS) is built up in China and whether the NIS is helpful for China to catch up. Our research methodology is based on the combination of new growth theory with the NIS theory and our involvement in OECD research project about Chinese NIS. We find that Chinese NIS is composed of two complementary systems, namely FDI-based innovation system and indigenous innovation system. Both systems are found to have a positive influence on attaining China's catching-up objective but indigenous innovation system seems not as influential as FDI-based innovation system for the moment. We suggest that Chinese NIS needs to be further shaped for improving the absorption and innovation capability of domestic firms and for strengthening university-enterprise-research institute interactions.