Abstract
New, large and growing segments of Chinese society are expressing new demand for health. In this new environment, the Traditional Chinese Medicine (TCM) industry is experiencing a process of radical re-organisation, upgrading and modernisation. Chinese policy-makers are clearly investing in the TCM industry to defend the health domestic producers from the potential foreign entry and, more generally, because this sector is judged as one of the key industries able to lead the development of domestic production capacity. In this context, the processes of TCM knowledge production and transfer to industry are at the core of all the ongoing government policies and firms strategies. The paper focuses on this scenario and it offers a case study that is considered a best practice from both the firm strategy and the public policy perspectives.
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