Clean technology R&D and innovation in emerging countries—Experience from China

Abstract

This paper touches upon two key issues related to clean technology deployment in emerging countries: what is the life cycle of R&D and innovation? And where does the R&D funding come from? The paper holds that the innovation climate, system and process in emerging countries do not follow the same trajectory as those in developed countries. Crafting an innovation model that is adapted to the needs and conditions of emerging countries thus is critical. Through revealing the four phases of an innovation life cycle in emerging countries, the paper highlights the dominant role of the public sector in clean technology R&D. With regards to R&D funding, the paper concludes that emerging countries could craft their domestic policy to spur clean technology R&D and innovation. China's experience demonstrates an array of policy measures that could reach this goal. These include designing a national science and technology strategy with a focus on clean energy, establishing funding programs to support clean energy R&D, assembling and managing multidisciplinary teams to bring together different types of expertise, and creating favorable policy environment to incentivize the private sector's investment in clean technology.