A pressing investigation into the global implications of China's shift to an innovation economy. As China shifts to an economy driven by innovation and productivity growth, the global implications of this transition will be significant. Amid the rise of techno-nationalism and a changing strategic calculus around the world, the manner and means of China's transition faces a high degree of scrutiny. China is attempting to balance a reliance on overseas sources of technology alongside efforts to strengthen domestic innovation capabilities as a hedge against the risks of a United States-led "decoupling." In these circumstances, it is essential to understand the many different forces of change within China, and the way China responds to outside changes. The evolution of China's innovation economy will be one of the key economic stories of the early twenty-first century, and the world will need China as a source of innovation in the decades ahead. The aim of this book is to help build a better framework for policymakers to find a new equilibrium in negotiating the terms of an oncoming shift in geopolitics.

This open access book provides a comprehensive review of technological innovation in China, focusing on some existing challenges and the debate on the role of public policies in promoting innovation. Technological innovation has become a vital factor in promoting high-quality development in China. By examining the current state of and challenges confronting China's technological innovation from both the supply side (talent and R&D) and the demand side (domestic and international demand), this book offers a view on how to enhance the efficiency of industry chain while ensuring security through innovation. Public policy often plays a crucial role in shaping and improving the national innovation system when new challenges emerge. We put special emphasis on innovation in strategically important sectors, which include the digital, green, and biotech industries, as well as the manufacturing and logistics sectors that are fundamental to the working of the whole innovation system. This book explains academically rigorous content in a simple manner, and is therefore suitable for readers from the fields of public policy, economics, finance, and innovative sectors who seek to better understand China's path of innovation. The book cites information from various credible sources, including academic journals, policy institutions, and a network of primary sources such as industry experts and renowned academics.

This open access book provides a comprehensive review of technological innovation in China, focusing on some existing challenges and the debate on the role of public policies in promoting innovation. Technological innovation has become a vital factor in promoting high-quality development in China. By examining the current state of and challenges confronting China's technological innovation from both the supply side (talent and R&D) and the demand side (domestic and international demand), this book offers a view on how to enhance the efficiency of industry chain while ensuring security through innovation. Public policy often plays a crucial role in shaping and improving the national innovation system when new challenges emerge. We put special emphasis on innovation in strategically important sectors, which include the digital, green, and biotech industries, as well as the manufacturing and logistics sectors that are fundamental to the working of the whole innovation system. This book explains academically rigorous content in a simple manner, and is therefore suitable for readers from the fields of public policy, economics, finance, and innovative sectors who seek to better understand China’s path of innovation. The book cites information from various credible sources, including academic journals, policy institutions, and a network of primary sources such as industry experts and renowned academics.

Two trends will have more influence than anything else on the world’s future political and economic situation: the development of artificial intelligence and the emergence of China as a competitor to the United States on the international stage. This book is about the emerging innovation economy. It uses systems theory and evolutionary economics as a theoretical point of departure and explains why the focal point of the geopolitical stage is moving away from the alliance between the United States and Europe, and towards an alliance between China, the 14 Regional Comprehensive Economic Partnership countries, the countries along the new silk road, and Europe. The book argues that the globalization strategy of neoliberalism laid the foundation for the Chinese economic engine. Whereas the old globalization was driven by cost differences generally, and wage costs specifically, the new globalization is driven by divergence in competence in general, and technological competence in particular, and China’s primary goal is to develop artificial intelligence and intelligent robots. Further, the book posits that the interactions between the climate crisis and the new technology will change production, distribution and the creation of profits, both in China and more widely in the global innovation economy. The book develops a structure to describe, analyze and explain the Chinese innovation economy and contributes to the discussion regarding technological developments in China. The book is written for readers who are oriented towards the new globalization that is emerging in the innovation economy and the factors driving China's economic growth.

This book argues that China must become an innovation-based economy to avoid the middle-income traps, and examines both the opportunities and challenges in meeting this goal.

After more than three decades of average annual growth close to 10 percent, China's economy is transitioning to a 'new normal' of slower but more balanced and sustainable growth. Its old drivers of growth -- a growing labor force, the migration from rural areas to cities, high levels of investments, and expanding exports -- are waning or having less impact. China's policymakers are well aware that the country needs new drivers of growth. This report proposes a reform agenda that emphasizes productivity and innovation to help policymakers promote China's future growth and achieve their vision of a modern and innovative China. The reform agenda is based on the three D's: removing Distortions to strengthen market competition and enhance the efficient allocation of resources in the economy; accelerating Diffusion of advanced technologies and management practices in China's economy, taking advantage of the large remaining potential for catch-up growth; and fostering Discovery and nurturing China's competitive and innovative capacity as China approaches OECD incomes in the decades ahead and extends the global innovation and technology frontier.