Globalization of R&D and China – Empirical Observations and Policy Implications

As one of the world’s largest recipients of Foreign Direct Investment (FDI), China is emerging as a key global player in Research and Development (R&D). This rapid increase in R&D investment is mainly attributed to the effort of strengthening the indigenous innovation capacity of domestic actors and, to an increasing extent, to the process of globalization of R&D with multinational enterprises as key driving force. This paper provides a detailed overview of the relative importance of foreign R&D in China based on quantitative mapping in terms of R&D inputs, outputs and local linkages in R&D-related activities, combined with an in-depth description of the nature of foreign R&D activities. Our empirical observation suggests that the growing importance of China in the globalization of R&D is more than a ‘flash-in-the-pan’. On one hand, China is facing new challenges, but at the same time is attempting to seize the “window of opportunity” to compete for knowledge and human resources through structural adjustments and new policy initiatives. On the other hand, multinational enterprises from OECD countries are not only intensifying, but also diversifying their activities in a larger number of R&D intensive sectors in China. In such a rapid and dynamic development, China seems to emerge not only as an important source of R&D but also a key magnet of global R&D operations.China; R&D; Globalization; Multinationals

Realising innovation opportunities in sub-Saharan Africa

The aim of the document is to identify and discuss a number of growth paths that might be explored to promote innovationdriven development in Sub-Saharan Africa. The document adopts a broad perspective of innovation, examining framework conditions, fundamental prerequisites, drivers and focal areas for innovation. The document addresses a spectrum of issues andtopics ranging from regional and global integration, the promises of inclusive innovation, the priorities and approaches for diversifying African economies, and the role of universities and the state in development. Although some of these themes are not included in traditional debates on innovation, we deem them to be of critical importance when analysing innovation as an engine of growth andfor ensuring an environment in which development outcomes are achieved through innovation

Institutional Analysis of Legal Change: The Case of Corporate Governance in China

During the last three decades, China has undergone a period of unprecedented institutional change. The gradual market transition of the economy and China’s integration into the WTO have created a strong demand for new laws and regulations. For institutional economics this period provides a unique opportunity to study the qualities, implications, and driving forces of distinct legal arrangements and their impact on economic development in transition economies. Empirical research not only provides insight into China’s emerging legal system, it also promises important feedback effects for the field of institutional economics. In this Essay we argue that meaningful analysis of legal change in transition economies, such as China’s, must look beyond change of law in the books; it requires analysis of institutional frameworks that shape social behavior, which in turn explain the effectiveness of changes in the law. Using the example of corporate governance, we show that changes in the law have not sufficiently been matched by changes in institutional conditions, explaining why, in spite of far-reaching judicial reform, Chinese corporate governance still displays significant weaknesses in practice

Shifting patterns in international research cooperation

The global scientific landscape has changed dramatically since the end of the Cold War. The scientific rise of China, as well as other emerging countries, has coincided with a rapid, perhaps unprecedented, increase in international academic cooperation. However, in recent years, mounting geopolitical friction and other developments are shaping a new context which is starting to affect the trajectory and patterns of scientific collaboration.This document is part of a series of reports aimed at covering the development of international scientific cooperation against the backdrop of changes in the international rules-based global order, global research ethics and norms, and increasingly urgent global societal challenges which require international coordination and cooperation within research, development, and regulation. We believe that this analysis can provide relevant insights for academia, industry, and government

China’s 15-year plan for scientific and technological development – a critical assessment

The latest long-term plan for science and technology reflects China’s determination both to overcome growing domestic social and environmental problems through technology and to become a world leader in innovation. This latest fifteen-year plan presents no radical departure from earlier strategies and continues to define policymaking by Beijing’s strong belief that innovation can be “decreed” top-down or steered by the government. The plan relies heavily both on supply-side policies for research and education and on a technology-driven view of innovation, rather than tackling less tangible and more complex issues such as deficits in social capital, institution-building, and building an innovation-friendly environment. New features in the plan include a clear emphasis on energy, environment, and water resources. New targets in the plan to strengthen “independent” or “indigenous” innovation raise concerns abroad over the emergence of “techno-nationalism” and implications for China’s future economic openness

Förbud mot samarbete med Kina är ingen bra lösning

Svensk-kinesiska forskningssamarbeten ökar, men att förhålla sig till Kina kräver kunskap, transparens och kompass. Det skriver Tommy Shih och Sylvia Schwaag Serger vid Lunds universitet