Incentives for Innovation in China
By Jun Li, Xuedong Ding
Routledge – 2014 – 256 pages
There is concern in China that the strategy which has delivered massive economic growth is unsustainable in the long run, that China’s economy is too dependent on low value added manufacturing and not enough based on high value technological innovation. This book assesses the policies implemented in recent years to address this, policies which include increasing the pool of human capital, especially by training very large numbers of graduate engineers, investing massively in improved infrastructure such as institutions of higher education, telecommunications and transport, and providing financial incentives – both direct government funding for private sector innovation activities and fiscal incentives which encourage innovation by reducing the tax burden on innovators. The book examines the impact of these policies, providing detailed studies of firms’ innovation activities both in particular sectors and in particular regions. Throughout, the book discusses how effective China’s innovation policies are and how innovation in China is likely to develop in future.
Part 1: Building an Innovation Nation: The Context 1. Introduction 2. National System of Innovation: Evolution and Characteristics 3. Innovation of Firms Part 2: Incentives for Innovation: Policies and Practices 4. Incentives for Innovation: Financial Policies 5. Incentives for Innovation: Fiscal Policies 6. Public Venture Capital and Innovation Part 3: Incentives for Innovation: Sectoral and Regional Implementation 7. Incentives for Innovation in the Automotive Sector 8. Incentives for Innovation in the New Energy Sector 9. Incentives for Innovation in the Yangtze River Delta Part 4: The Chinese Experience: Evaluation and Prospect 10. Prospects of Innovation-Oriented Financial and Fiscal Policies
Jun Li is a Senior Lecturer in the Entrepreneurship and Innovation Group at Essex Business School, University of Essex
Xuedong Ding is a Vice Minister in the Ministry of Finance, Beijing