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An institutionalized policy-making mechanism: China’s return to techno-industrial policy

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  • Chen, Ling
  • Naughton, Barry

Abstract

Technology and innovation policy in China shifted dramatically in 2003, returning to “techno-industrial policy” that involves direct government interventions to shape specific industrial sectors. This article precisely documents the shift and shows that it occurred through two successive waves of policy change. This policy shift was formulated through a policy process that, like others in China, has become increasingly institutionalized. The article introduces a general four-phase model that describes the structured policy process in China. In the case of innovation policy, this structured policy process facilitated a shift to a substantially more interventionist policy.

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  • Chen, Ling & Naughton, Barry, 2016. "An institutionalized policy-making mechanism: China’s return to techno-industrial policy," Research Policy, Elsevier, vol. 45(10), pages 2138-2152.
  • Handle: RePEc:eee:respol:v:45:y:2016:i:10:p:2138-2152
    DOI: 10.1016/j.respol.2016.09.014
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    9. Devarakonda, Ramakrishna & Liu, Aqi, 2023. "A legitimacy-based view of the impact of government venture capital on startup innovation: Evidence from a transition economy," Other publications TiSEM 3afc4804-f469-4dd7-bb34-8, Tilburg University, School of Economics and Management.
    10. Prema-chandra Athukorala, 2021. "Asian economic development: A primer," Departmental Working Papers 2021-07, The Australian National University, Arndt-Corden Department of Economics.
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    13. Yang Gao, 2022. "The Belt and Road Initiative and cascading innovation in China’s domestic railway ecosystem," Journal of International Business Policy, Palgrave Macmillan, vol. 5(2), pages 236-258, June.
    14. Chen, Ling & Yang, Wenhui, 2019. "R&D tax credits and firm innovation: Evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 146(C), pages 233-241.
    15. Giorgio Prodi & Francesco Nicolli & Federico Frattini, 2020. "Embeddedness and local patterns of innovation: evidence from Chinese prefectural cities," Economic Complexity and Evolution, in: Andreas Pyka & Keun Lee (ed.), Innovation, Catch-up and Sustainable Development, pages 283-307, Springer.
    16. Sun, Yutao & Jiang, Lin & Cao, Cong & Tseng, Fang-Mei, 2024. "From contributors to boundary spanners: Evolving roles of government agencies in China’s innovation policy network (1980–2019)," Technovation, Elsevier, vol. 132(C).
    17. Ha-Joon Chang & Kiryl Zach, 2018. "Industrial development in Asia: Trends in industrialization and industrial policy experiences of developing Asia," WIDER Working Paper Series wp-2018-120, World Institute for Development Economic Research (UNU-WIDER).
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    20. Guo, Yan & Zhang, Haochen, 2022. "Spillovers of innovation subsidies on regional industry growth: Evidence from China," Economic Modelling, Elsevier, vol. 112(C).

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