Abstract
This paper aims to explore the changing role of China in the global innovation network and the evolution of product-embodied research and development (R&D) in this country. R&D embodied in international trade flow is also considered to ensure the comparability with studies of developed countries. The results show that China is transforming from a technology absorber to a neutral player who is also a major technology producer. Further analysis demonstrates that industrial sectors have exhibited different characteristics during this transformation. China’s innovation diffusion networks become more evenly distributed in terms of inward linkages, while the networks become more hierarchic in terms of outward linkages. The latter trend is beneficial to technology diffusion. Particularly, three industries (I-13, I-12, and I-7) possessed the central position as the most important R&D sources.
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