Abstract
This paper draws on stem cell research and financial derivatives as two case studies to analyse the role of scientific knowledge and technology in the development of the Chinese knowledge economy. The findings suggest that, despite China's recent commitments in acquiring international expertise, there is a decoupling between knowledge acquisitions and applications in the institutionalisation of knowledge within these sectors. Scientific-based knowledge and professional know-how are on the one hand perceived as prime drivers of China's development, yet they on the other hand remain subordinate to existing administrative infrastructures. The paper further elucidates the causes and implications of this by describing the dual reality of knowledge in relation to an isomorphic process of rationalisation outlined by new institutional organisational theory.
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