Increasing Industrialization of R&D in China:
Empirical observations of the role of the state
This article is a chapter in the book entitled "Transformation and Development: The Political Economy of Transition in India and China" edited by AK Bagchi and AP D'Costa and published by Oxford University Press, New Delhi, India. In this I have shown how China is giving importance and utilizing S&T for national development. The article demonstrates how the Chinese state has been promoting the increasing industrialization of R&D. It is apparent that the share of the state as a source of R&D funds as well
as a sector of R&D performance is much higher than portrayed, and the state is playing a more critical role in China’s economic
development by outsourcing the R&D activities to different players, mainly
enterprises, using different mechanisms. The Chinese state contributes and
stimulates R&D by the industries through suitable direct and indirect tax
incentive mechanism, providing preferential insurance through the nationalized
banks. Furthermore, the state provides long-term guidance and supervision by
adopting suitable R&D policies, implementing ambitious R&D programs,
identification and designation of R&D subjects and the overall framework of
National Innovation System (NIS). It is argued here that the Chinese State has been active as a R& D player even as the nation internationally integrates and allows the market to function more. It is also inferred that the industrialization of R&D in China is a conscious strategy to promote industrial development while retaining substantial regulatory power.
This and many others well written articles on the current transformation and development process in both India and China has been nicely captured in the above mentioned book. The details of the book can be found in the OUP website http://ukcatalogue.oup.com/product/9780198082286.do#.UMbgN-RvMl-
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