Discussion: Political and Institutional Factors in China’s Innovation and

Growth Strategy

Yang Jiang

‘Scientific Decision’?•Concentration of distributional power:

NDRC, MII, SASAC; local governments, banks

•Problems with 4 trillion stimulus:

• retarded/fake projects

• lack of environmental/design/land usage approval

• moved to other uses (financial derivatives, cars, real estate etc.)

• overcapacity

• strengthening of SOEs vis-a-vis SMEs and MNCs

Strategic Industries

Policies

•forced transfer of technology

•weak IPR protection

•overseas M&A

Company-led Innovation

• No. 1 applicant of patents (under the Patent Cooperation Treaty) world wide in 2008;

• No.1 applicant in China for 6 years;

• But on adaptability, process, enhancement

• 1984 Legend--China Academy of Science $25,000

• 2005 Acquisition of IBM PC

• Research centres in Japan, China, US

• 2009 acquisition of Seattle-based Switchbox Labs

• headquarter in New York

Mercedes C vs Geely Merrie 300Smart vs er. Chinese SmartDaewoo Matiz vs Chery QQ

Analytical Frameworks

•local meso-corporatism;

fragmented authoritarianism

(Lieberthal and Oksenberg 1990)

•competition led growth;

‘championship mentality’

How changeable are institutions?

•Discourse: COP15

•Social unrest: rural development

•Learning: the Nordic model

•Crisis: large-scale withdrawal of

MNCs? Bubbles and bad loans