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7 - The Political Economy of China’s R&D Internationalization

Policy-Led Innovation and Changes in China’s Growth Model

from Part II - Types of Innovation in Emerging Markets

Published online by Cambridge University Press:  15 March 2021

By
Peter Gammeltoft  and
Max von Zedtwitz
Edited by
Fernanda Cahen ,
Lourdes Casanova  and
Anne Miroux
Fernanda Cahen
Affiliation:
Centro Universitario FEI, Brazil
Lourdes Casanova
Affiliation:
Cornell University, New York
Anne Miroux
Affiliation:
Cornell University, New York
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Summary

The extent and speed with which China has captured gains from R&D internationalization sets the country apart from other emerging economies and has furthered its aspirations to upgrade from innovation follower to innovation leader. In this chapter, we discuss how the internationalization of China’s industrial R&D has evolved in the interplay between firm strategies, domestic government policies and international policies and regimes. First, we outline the development of China’s R&D internationalization, identifying its major drivers and motives. Second, we link this to China’s broader domestic and international political economy: its growth model, domestic S&T upgrading (e.g., the Made in China 2025 plan), firm-level internationalization (e.g., in the Belt and Road Initiative), and the emergence of more restrictive inward FDI regimes in Western countries. Finally, we comment on the likely future trajectory of Chinese R&D internationalization against a global backdrop characterized by increasing economic nationalism, trade frictions, and geopolitical security concerns.

Keywords

Chinainternational R&Dforeign direct investmentemerging economyindigenous innovationMade in China 2025Belt and Road Initiativeinvestment policyinnovation policy
Type
Chapter
Information
Innovation from Emerging Markets
From Copycats to Leaders
 , pp. 185 - 221
Publisher: Cambridge University Press
Print publication year: 2021

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