The Entrepreneurial State in Innovation

Abstract

The many innovations of the indigenous Chinese aerospace industry that propelled China into its current global position have been and are associated with state policy. We discuss the activities of the entrepreneurial Chinese state and its comparative advantage in making judgemental decision during uncertainty. By exploring how the entrepreneurial state has tackled events in the context of entrepreneurial crisis or entrepreneurial opportunity, we gain insight into the internal and external forces driving aerospace conglomerates AVIC, CASC, CASIC and COMAC’s re-combinative innovation.