Analysis on the evolution and governance of the biotechnology industry of China

The past twenty years have witnessed the high-speed growth of China’s biotechnology industry, and this presents an excellent opportunity to examine the changes that have taken place, especially, to carry out overall evaluation and governance analysis from the perspective of technology policies. Although China’s biotechnology industry has achieved tremendous extension both in scale and structure, the strengths it gained from basic research have been significantly weakened by commercialization. This has resulted in the comparatively limited scale of the whole industry, innovation-lacking products, poor output from research and development and scarcity of industrial resources. A large range of literature regarding China’s biotechnology industry attributes these outcomes to vague and even inappropriate governance, findings supported mainly by analyses based on the linear model of impact of government policies on industrial development. In these analyses, government, enterprises and companies as well as R&D organizations are either put on the opposite poles or in a straight line. After examining the nature of China’s biotechnology industry, and in particular the dynamic procedures in research and development, the authors of this paper argue that besides government, enterprises and R&D organizations, a diverse array of factors should be taken into account as we tackle issues emerging in understanding the development of China’s biotechnology industry. Furthermore, these factors, human or nonhuman, should not be arranged as opposing poles or linearly connected points on a straight line. They are in fact all knitted in networks and act as both knitters and knots. China’s biotechnology industry gains its strength to develop and evolve from these networks, thus its governance must be aimed at improving their stability and quality. Although the main disciplinary perspectives of this research are historical and sociological (including identification of the three development stages of biotechnology in China since 1978 to present days), a large number of concepts and ideas from management studies as well as an interdisciplinary approach are also incorporated into the analysis. The main model used in this research is Actor Network Theory, which is employed as a basic theoretical frame. From this starting point the authors attempt to make a closer examination of China’s biotechnology industry both at the level of technology research and development and at the level of commercialization. The modeling process in this research can be regarded as an attempt to explore the social construction of China’s biotechnology industry. The paper reveals how China’s biotechnology industry develops in the form of networks within the country’s social context and what kinds of relationships exist among the relevant factors; therefore, providing guiding insights for improving the governance of China’s biotechnology industry both in policy and management

China's absorptive State: research, innovation and the prospects for China-UK collaboration

China's innovation system is advancing so rapidly in multiple directions that the UK needs to develop a more ambitious and tailored strategy, able to maximise opportunities and minimise risks across the diversity of its innovation links to China. For the UK, the choice is not whether to engage more deeply with the Chinese system, but how. This report analyses the policies, prospects and dilemmas for Chinese research and innovation over the next decade. It is designed to inform a more strategic approach to supporting China-UK collaboration

Managing the interface between public sector applied research and technological development in the Chinese enterprise sector

China's technological capabilities are emerging rapidly and the country will become a major challenger to established nations in terms of R&D and innovation in the near future. For the moment, however, contradictory signals emerge from the Chinese economy leaving experts pondering about the country's true potential for technological upgrading on a broad scale. The integration of the domestic research system, international technology transfer, and technological development remains limited to a few high-tech companies, while large segments of the domestic private sector have limited access to knowledge and technologies to upgrade their activities. --China,Guangdong,interface,knowledge supply,knowledge demand,regional innovation system,science-industry relations

From new to the firm to new to the world. Effect of geographical proximity and technological capabilities on the degree of novelty in emerging economies

This paper investigates empirically what it takes for a firm to move from new to the firm to new to the domestic market and new to the world innovations. More specifically, the paper analyses the relationship between, on the one hand, the degree of novelty of product innovation and on the other hand the accumulation of technological capabilities at firm level as well as the geographical spread of the innovation activities of the firm. The analysis is based on a unique firm level data collected in Pune(India) and Beijing (China) in 2008. The paper shows that the role of the region supporting the move from new to the firm to new to the world is limited. In order to achieve a higher degree of innovation global networks are more important than local networks.degree of novelty; technological capabilities; technological sourcing; research collaboration; region

SHANGHAI – FROM DEVELOPMENT TO KNOWLEDGE CITY

This report provides insights on the expansive development in Shanghai of human resources in higher education and the creation of a huge web of incubators, university science parks, district industrial parks, and various specialized development zones. With a total population of some 17 million and a GDP per capita of around US$3,000 the city planners expects that 2.5 per cent of its GDP will in 2005 be used for research and development. FDI in high technology and returning scientists in microelectronics illustrate the ambitions of Shanghai to become a knowledge city. More than 140 foreign-controlled R&D laboratories have already been established in Shanghai. Their number and sizes will increase and also involve more basic research as the IPR regime improves. Shanghai will emerge as innovative knowledge region on the world stage that before 2020 will be competing with other global knowledge regions such as the Oxford-London-Cambridge triangle by attracting talent and creating new knowledge. This report highlights a rapid and continued expansion of higher education in Shanghai that now has 59 colleges and universities with a total enrolment in 2004 of 600,000 students. The City has 10 universities which are included in the national list of Top-100 Universities which have been selected by the Ministry of Education to receive special treatment and extra resources. Three of a dozen Chinese universities with expectation to become recognized as world-famous research universities are located in Shanghai – Fudan University, Tongji University and Shanghai Jiaotong University. Fudan University Science Park and the School of Microelectronics at Fudan University provide examples of the changing character of the university system in Shanghai Linked to the development of human resources is a web of technological infrastructure of which Zhangjiang High-Technology Development Zone provides an illustration of ongoing efforts to integrate industrial production, research and university education. Shanghai is attracting overseas entrepreneurs in its advancing semiconductor industry, exemplified by SMIC with one of its bases in Zhangjiang High-Technology Development Zone, Shanghai is also attracting returning scientists to expand its IC knowledge base as exemplified by the School of Microelectronics at Fudan University, which has 600 graduate students.Human factors; Universities; Fudan University; Regional innovation System (RIS) Semiconductors; High Technology Parks; Overview of Science and Technology

Different competences, different modes in the globalization of innovation?. A comparative study of the Pune and Beijing regions

Since the seminal work of Archibugi and Michie (1995) on the globalization of innovation, several authors have tried to understand the complex relationship between innovation and internationalization, mainly using firm or sectoral level data. However, most of them tend to focus on just one form of globalization of innovation – exploitation of technology, research collaboration or offshoring of R&D – and often One traditional indicator of innovation, like patents or R&D investments, thus ignoring the complexity of the phenomenon. Furthermore, little attention has been paid to the interplay of the micro characteristics of firms, the region in which they are embedded and different forms of globalization of innovation. Our paper is based on three distinct modes of globalization of innovation: global exploitation of innovation, global sourcing of technology and global research collaboration, thus adapting Archibugi and Michie’s taxonomy to a developing country context. We then use this taxonomy to explore empirically the linkages of firm-level competences, the nature of the international activities and the region in which the firms are located: Pune in India and Beijing in China. We use primary data on the two regions to show that the Pune region is specialized in the three types of globalization of innovation, and in particular in the exploitation of innovation more than Beijing. A deeper analysis of the micro characteristics of the firms shows that the three modes of globalization of innovation are associated to different competences. Firms with technological and organizational competences show a higher propensity to develop international linkages, while firms with a high level of educated human resources seems to focus more on the domestic market.globalization; innovation; regions; competences; China; India

Anatomy of cluster development in China: The case of health biotech clusters

Focussing on China's health biotech clusters the study explores the anatomy of interaction in as well as between various clusters. While the literature has identified the existence of a dense network of durable interactions among firms and between firms and academia at a particular location as one of the most important prerequisites for well-performing clusters, we show that network ties extending beyond regional boundaries are equally valuable for the innovative capacity of China's biotech firms. Analysing the demographic process of cluster emergence we show that there exist different types of biotech clusters in China, which are closely linked and exchange knowledge and technology amongst each other. It appears as if further analysis of these cross-cluster links may provide important insights of how learning and innovation works in China's health biotech industry. Although China's science parks and industrial bases may on an individual basis appear to be badly structured, the organization of China's health biotech industry turns out to be substantially enhanced once these external linkages are taken into consideration. --China,health biotechnology,cluster,entrepreneurship,localization

Green chemistry and green engineering in China: drivers, policies and barriers to innovation

With the world’s largest population and consistently rapid rates of economic growth, China faces a choice of whether it will move towards a more sustainable development trajectory. This paper identifies the different factors driving innovation in the fields of green chemistry and green engineering in China, which we find to be largely driven by energy efficiency policy, increasingly strict enforcement of pollution regulations, and national attention to cleaner production concepts, such as “circular economy.” We also identify seven key barriers to the development and implementation of green chemistry and engineering in China. They are (1) competition between economic growth and environmental agendas, (2) regulatory and bureaucratic barriers, (3) availability of research funding, (4) technical barriers, (5)workforce training, (6) industrial engineering capacity, and (7) economic and financial barriers. Our analysis reveals that the most crucial barriers to green chemistry and engineering nnovations in China appear to be those that arise from competing priorities of economic growth and environmental protection as well as the technical challenges that arise from possessing a smaller base of experienced human capital. We find that there is a great deal of potential for both the development of the underlying science, as well as its implementation throughout the chemical enterprise, especially if investment occurs before problems of technological lock-in and sunk costs emerge

Alliance-based Network View on Chinese Firms' Catching-up: Case Study of Huawei Technologies Co.Ltd

With China's rapid economic growth in recent years, many Chinese firms especially in high-tech industries have started to technically lead in the international market. In this study, we aim to uncover the root causes that lead to Chinese firms' catching up from network perspective. By taking Huawei Technologies Co. Ltd. as a case, we integrate absorptive capacity development and firm-level catching up into an alliances-based network framework. We found that network alliances with firms and universities complement each other at different catching up stages; and alliances-based network provides a springboard for Chinese firms to shorten catching up path. We argue that in Chinese context, impact of FDI on firms' performance comes into effect only if partnership is carried out; alliances with universities facilitate development of absorptive capacity at an early stage; Partnering with leading players stimulate R&D investment at a late stage and simultaneously enhance firm's innovation performance as well.Strategic alliances, Network, Chinese firms, absorptive capacity, catching up

Choice Internal report I-3: EU member state cooperation with China in ICT R&D&I

In this report EU member states bilateral programmes of cooperation with China in ICT R&D are reviewed. Conclusions are presented followed by recommendations targeted at organisations in EU member states interested in exploring the potential for bilateral collaborative ICT R&D with Chinese organisations