Incentives for Innovation in China

In the past three decades, China has successfully transformed itself from an extremely poor economy to the worlds second largest economy. The countrys phenomenal economic growth has been sustained primarily by its rapid and continuous industrialization. Currently industry accounts for nearly two-fifths of Chinas gross domestic product, and since 2009 China has been the worlds largest exporter of manufactured products. This book explores the question of how far this industrial growth has been the product of government policies. It discusses how government policies and their priorities have developed and evolved, examines how industrial policies are linked to policies in other areas, such as trade, technology and regional development, and assesses how new policy initiatives are encouraging Chinas increasing success in new technology-intensive industries. It also demonstrates how Chinas industrial policies are linked to development of industrial clusters and regions.