Contents
v
Acknowledgments xi
Abbreviations xiii
Executive Summary xv
Chapter 1 Pursuing a Balanced Strategy 1
The 2006 S&T Program 1
Purpose and Scope of This Study 2
A Broad Definition of Innovation 3
The Scale of Chinese Innovation 3
The Achievements of Chinese Innovation 7
The Contribution of Innovation to China’s
Current Economic Success 10
The Innovation Challenges Faced by China 11
Pursuing a Balanced Strategy 16
Conclusions 21
Chapter 2 Creating the Right Incentives 23
Who Performs R&D in China? 25
Making SOEs More Innovative 29
Strengthening External Incentives 35
Raising the Demand for Innovation 40
Conclusions 46
Chapter 3 Building the Capacity of Private Enterprises 49
China’s Emerging Private Enterprises 49
Innovation Activities of Chinese Private
SMEs: A Close-Up 52
Effectively Managing Human Resources
for Innovation 57
Facilitating the Collaboration of SMEs
with RDIs and HEIs 66
Enhancing Innovation Services 73
Conclusions 81
Chapter 4 Strengthening the Ecosystem for the
Venture Capital Industry 83
The Ecosystem for the VC Industry 86
The Domestic VC Industry in China 91
Strengthening the Ecosystem for the VC Industry 98
The Role of the Government in Supporting
the VC Industry 107
Conclusions 109
Chapter 5 Moving Forward with Actions 111
Balanced Strategic Thinking 112
Innovation-Supporting Policies 112
SME-Specific Programs 114
Key Issues for Further Study 116
Notes 119
References 127
Index 135