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The Role of the Government in R&D Promotion and the Development of Technology-Intensive Industries in China

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  • Jai S. Mah
  • Myeong Yeo

Abstract

This article explains the role of the government in promoting China’s R&D activities and development of technology-intensive industries. The measures implemented comprise: increasing the amount of R&D expenditure; developing science parks; encouraging private firms to undertake R&D activities and invest in technology-intensive industries by providing tax incentives; and attracting foreign-invested enterprises, in particular those bringing advanced technologies. As a result of government policies to promote R&D activities and develop technology-intensive industries, there has been an apparent improvement in human capital, innovation, and the production and export of output produced in technology-intensive industries. Finally, this article talks of the implications for developing countries pursuing an R&D promotion policy.

Suggested Citation

  • Jai S. Mah & Myeong Yeo, 2014. "The Role of the Government in R&D Promotion and the Development of Technology-Intensive Industries in China," China Report, , vol. 50(2), pages 91-107, May.
    • Handle: RePEc:sae:chnrpt:v:50:y:2014:i:2:p:91-107
    DOI: 10.1177/0009445514523644
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    References listed on IDEAS

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    1. Hu, Albert Guangzhou & Jefferson, Gary H., 2009. "A great wall of patents: What is behind China's recent patent explosion?," Journal of Development Economics, Elsevier, vol. 90(1), pages 57-68, September.
    2. Shang-Jin Wei & Guanzhong James Wen & Huizhong Zhou (ed.), 2002. "The Globalization of the Chinese Economy," Books, Edward Elgar Publishing, number 2589, December.
    3. Tain-jy Chen & Yi-Ping Chen, 1995. "Foreign Direct Investment," Industry and Innovation, Taylor & Francis Journals, vol. 2(1), pages 57-68.
    4. Ding Lu, 2002. "Revamping the Industrial Policies," Chapters, in: Shang-Jin Wei & Guanzhong James Wen & Huizhong Zhou (ed.), The Globalization of the Chinese Economy, chapter 2, Edward Elgar Publishing.
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