Becoming leaders: how the Chinese knowledge-intensive innovation ecosystem affects the firms search for innovation

In Chapter 2, Jin and McKelvey (2020) explain how seven empirical phenomena about the development of China and Chinese firms is impacting technology, innovation and globalization from the perspectives of technological, entrepreneurial, and productive opportunities. These seven empirical phenomena are described through the data: 1) National innovation system, public policy and university-industry collaboration; 2) Sheer size and growth of economies; 3) Increasing competitiveness of Chinese business; 4) Strengthening global ties - flows inward and outward foreign direct investment; 5) Increasing R&D investment; 6) Increasing human capital on science and technology, including education on STEM; and 7) Increasing S&T outputs. Based on the data, we argue that the rising market, technological and productive opportunities contribute to Chinese firms to capture upgrade their technological capabilities. These empirical trends matter for the future. This chapter thus analyzes the Chinese innovation system as part of a global innovation space, in order to help explain how China is affecting both Chinese and foreign firms.