China is working hard to shift to an economy driven by innovation and productivity growth. The global implications of this transition will be significant, given the size of China’s economy and the degree of its integration into world trade and global value chains. The degree of scrutiny on the manner and means of transition will likewise be intense, particularly given the rise of techno-nationalism and a changing strategic calculus around the world. China is attempting to balance the reliance on overseas sources of technology that has served it so well, with efforts to strengthen purely domestic innovation capabilities, not least as a hedge against the risks of a US-led “decoupling”.

In these circumstances, a better understanding of the many different forces of change within China, and the way it responds to outside changes, is essential. The evolution of China’s innovation economy will be one of the key economic stories of the early 21st 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 policy makers overseas and in China to find a new equilibrium in negotiating the terms of this engagement.

List of Tables
List of Figures

Introduction: Innovation and China’s Global Emergence
Bert Hofman, Erik Baark and Jiwei Qian

Part One: Implications of China’s Innovation Emergence

China and the US: Technology Conflict or Cooperation?
Gary H. Jefferson

The US- China Trade War and Myths about Intellectual Property and Innovation in China
Dan Prud’homme

Global Implications of China’s Policies on Indigenous Innovation
Erik Baark

China’s Talent Challenges Revisited
Cong Cao and Denis Fred Simon

China’s International S&T Relations: From Self-Reliance to Active Global Engagement
Denis Fred Simon

How Does International Collaboration Lead to Radical Innovation in Latecomer Firms?
Xiaolan Fu, Cintia Külzer-Sacilotto, Haibo Lin and Hongru Xiong

Part Two: Industrial Policy Challenges

PRC Industrial Policies Postdate Rather than Lead Economic Activity
Carsten A. Holz

Made in China 2025 and the Proliferation of Intangible Assets
Anton Malkin

Industrial Policy and Competitive Advantage: A Comparative Study of the Cloud Computing Industry in Hangzhou and Shenzhen
Bai Gao and Yi Ru

Global Value Chains and the Innovation of the Chinese Mobile Phone Industry
Yuqing Xing

List of Contributors
Index