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Sources of Innovation in China's Manufacturing Sector: Imported or Developed in-House?

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  • Yifei Sun

    (Department of Geography, California State University, Northridge, CA91330, USA)

Abstract

The author investigates the innovative behavior of large and medium-sized manufacturing enterprises in China. It is revealed that in-house research and development (R&D) efforts, rather than imported technologies, are the primary sources of industrial innovation in China. Regarding in-house R&D efforts, it is found that in-house R&D laboratories are important sources for the creation of new products as measured by patents, though it is enterprise-wide R&D spending rather than the mere presence of in-house facilities that is more likely to lead to market success. Concerning importation of technologies, it is revealed that the limited nature of efforts to absorb imported technologies has become a serious barrier to fulfilling the potential of these technologies and to upgrading China's internal creative capabilities. In addition, domestic technology markets have not been effectively linked to large and medium-sized industrial enterprises, despite China's enduring efforts in this direction since the middle 1980s. It is therefore concluded that the organization of R&D activities in China's industrial enterprises is still fragmented, with only weak linkages between technology importation and assimilation, between industrial R&D and domestic technology markets, and between business and R&D activities within enterprises.

Suggested Citation

  • Yifei Sun, 2002. "Sources of Innovation in China's Manufacturing Sector: Imported or Developed in-House?," Environment and Planning A, , vol. 34(6), pages 1059-1072, June.
    • Handle: RePEc:sae:envira:v:34:y:2002:i:6:p:1059-1072
    DOI: 10.1068/a34107
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    1. Ingo Liefner & Stefan Hennemann & Lu Xin, 2006. "Cooperation in the Innovation Process in Developing Countries: Empirical Evidence from Zhongguancun, Beijing," Environment and Planning A, , vol. 38(1), pages 111-130, January.
    2. George C. S. Lin & Cassandra C. Wang & Yu Zhou & Yifei Sun & Yehua Dennis Wei, 2011. "Placing Technological Innovation in Globalising China," Urban Studies, Urban Studies Journal Limited, vol. 48(14), pages 2999-3018, November.
    3. Richard Florida & Charlotta Mellander & Haifeng Qian, 2012. "China's Development Disconnect," Environment and Planning A, , vol. 44(3), pages 628-648, March.

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