The rapid development of the Chinese economy during the 1990's has intensified research on technological innovation. Recent policy emphasis on innovation as a path to sustainable economic growth will only accelerate work on this important topic. The work by individuals and groups at various research institutes and universities has mainly been published in leading Chinese scholarly journals. In this paper, we develop a framework and do a substantive review of the literature to characterize the state of knowledge about technological innovation in China, with special emphasis on: 1) conceptual contributions, 2) empirical results, and 3) connections between innovation and performance.
Long Range Planning
China is simultaneously growing and transforming from a command to a market system. The process of reform began earlier than in Eastern Europe, but the state owned enterprise sector remains an intractable problem. What has accounted for the remarkable rate of economic growth sustained over the last 20 years, are the spontaneous entrepreneurial efforts of the collectively owned Township and Village Enterprises (TVEs), and the Private and Individual Enterprises (IOEs). Together with the widespread distribution of shareholding, this could represent the foundations of a stakeholder economy. The success of further economic reform will depend on the perception of the Chinese people's stake in the future of their country.