Innovation in China: Harmonious Transformation?

After 15 years of negotiation, China's accession to WTO membership on December 11, 2001 has rapidly demonstrated price competitive impacts on OECD economies. However, with globalization China must itself innovate, develop environments for innovation and learn to protect and develop the outcomes of its innovation.This unique volume of research papers focuses on the role of China's innovation systems in its remarkable economic development. Leading Chinese and Western scholars examine the historical roots, strengths, weaknesses and future challenges of China's innovation. Grouped into sections on learning and innovation, development and learning in high-tech and traditional industries, regional innovation systems and the role of foreign direct investment, foreign technology and absorptive capacity, a dozen refereed papers review, critique, comment and make recommendations on the role of innovation in China's economic development.Regional case studies include the development and innovation in consumer-goods manufacturing clusters in China, local cluster learning in the context of the global value chain, Chinese cell phone manufacturers' regulation, technology, market, skills and competence, mass customization of life and health insurance, and Shanghai (China) and Bangalore's (India) regional innovation systems for generating economic development.The development of Hong Kong from trade hub to innovation hub is explored in the role of Hong Kong's innovation system in linking China to global markets. The role of institutions in promoting technology transfer is explored in regional agro-innovation systems. The global Chinese diaspora network is examined as entry point to knowledge-based development in local economies. And the much examined role of FDI in human capacity building and technology spillover is viewed from its impact on regional development in China.However, China is learning intellectual property rights' lessons from the West in its own way: in small firm-dominated manufacturing clusters, producers act collectively in the regulation and management of innovative knowledge through intellectual property rights; while the majority of the enterprises are still in imitation stage of 'latecomer learning', recent growth is noted in the generation of invention, patent application and management.Policy implications from the papers indicate that China's development strategy, built on enhanced quality of products and services, requires new forms of organisation that promote learning in connection with production - both experientially and scientifically. Innovation policy to build experience-based learning has implications for internal organisation of firms, for inter-organisational networks and for development of social capital and trust.While affected by globalisation, China, through its size and growth has become significant in the globalisation process. With China's 'superpower' status in the new world economy, this volume concludes with the need to