Governance and the China innovation economy

Abstract

This paper argues that China after decades of investment into creating self-innovation capacity with little success is finally making some significant progress. The evidence for this ranges from multiple technology companies entering the top ten lists globally to growing success of innovation output from some of its innovation centers. The recent evolution of this change demonstrates that China is beginning to move away from total dependence on imitation innovation as the basis of its manufacturing- and service-based economies. It is argued that a three-pronged model of governance after the work of David Bell along with a single-party political leadership system has contributed to this recent development.