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Run of the Red Queen – Government, Innovation, Globalization and Economic Growth in China Relié – 10 mai 2011
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Few observers are unimpressed by the economic ambition of China or by the nation's remarkable rate of growth. But what does the future hold? This meticulously researched book closely examines the strengths and weaknesses of the Chinese economic system to discover where the nation may be headed and what the Chinese experience reveals about emerging market economies. The authors find that contrary to popular belief, cutting edge innovation is not a prerequisite for sustained economic vitality―and that China is a perfect case in point.
- Nombre de pages de l'édition imprimée288 pages
- LangueAnglais
- ÉditeurYale University Press
- Date de publication10 mai 2011
- Dimensions15.56 x 2.54 x 23.5 cm
- ISBN-10030015271X
- ISBN-13978-0300152715
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Détails sur le produit
- Éditeur : Yale University Press (10 mai 2011)
- Langue : Anglais
- Relié : 288 pages
- ISBN-10 : 030015271X
- ISBN-13 : 978-0300152715
- Poids de l'article : 590 g
- Dimensions : 15.56 x 2.54 x 23.5 cm
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That the book's views are not surprising to me is probably due to my background. My parents had worked for local governments in China, and I had worked in an SOE and later a private company in China. Currently I am an academic researcher in the US and my research touches on innovation in China (hence my interests in this book).
Personally, I believe a few other factors also contributed to the lack of success. First, the system of funding university research projects is highly inefficient (see this critical article by two prominent Chinese scientists on the Science magazine: [...], leading to waste of vast amounts of research money. This is an important aspect of the national institution which is not covered in the book. Second, there is also a scarcity of highly educated scientists and engineers with experience in cutting edge research, although rank-and-file engineers are abundant. The current environment in China does not attract enough of the best overseas Chinese (let alone foreign) scientists and engineers to migrate to China yet. It's more difficult for them to find in China the type of employers they prefer, e.g. Intel. It's true that Intel has research facilities in China, but it's unlikely they have moved their most valuable research to China. Third, while China boasts great manufacturing capacity in many products, it does not produce the best high-precision machinery which is required for making advanced high-tech products such as computer chips and airplane engines. I would say this is a lack of manufacturing capacity at the top end.
On the research methodology side, I would love to see a survey of executives on what they think are the most severe impediments to long-term R&D. This would provide direct evidence on the link from weak institution to weak frontier innovation performance suggested in the book. Since R&Ds are carried out by firms and individuals, it's crucial to get an direct account of their behavior.
The underlying assumptions of the "run of the Red Queen" development model are that economic growth does not solely rely on novel product innovation and creation of new technology. Analogous to Japanese and Korean experience, a country is not required to go beyond the cusp of the technological frontier so long as it can run fast enough into new niches on the basis of the original innovation. According to the authors, this development model is relevant and resilient to the China context for three key reasons. First, the overall institutional environment in mainland China cannot provide an incentive to economic actors and agents to be nuts about novel product innovation because of high level of structured uncertainty and low level of institutionalization (P.48). Second, the emergence of globally fragmented production in international economic system has resulted in interfirm trade in components and services that creates huge business opportunities to suppliers in emerging economies (P.14). For example, Apple is the original innovator of iPod and iPhone. They concentrate on R&D but outsource or offshore production to manufacturers (Foxconn) in mainland China. Third, mainland China has a huge consumer market (1.3 billion population) (P.201) for second-generation innovation. Baidu, the dominant Chinese search engine and defines itself as the Chinese Google (P.80), and xiaolingtong (XTL), a personal hand-phone system of locally enabled mobile phones (P.59), are direct copies of original innovation from elsewhere (US and Japan).
This book has high theoretical and practical values. In theory, the authors have adopted North's institutional theory to demystify the connection between novel innovation and national/regional politics in mainland China. Moreover, the authors also prompts readers to rethink theoretical connection between innovation and economic growth in which sustainable economic growth can be derived from imitation and second-generation innovation. In practice, this book guides readers to understand IT industry in three key economic cities/regions (Beijing, Shanghai, Pearl River Delta) under different political, economic, and policy models (Chapter 3, 4, 5). It is worthwhile for business executives from MNCs to understand that mainland China cannot be viewed as a single market from legal, political, economic, and market perspectives. More importantly, this book also provide insightful ideas to Chinese policy makers. Without having a stable institutional environment (i.e. protection of intellectual property right), the intention of building of a strong and independent innovative capacity in mainland China will continue to become a castle in the air.
This book is highly recommended to readers who are interested in innovation, politics, and economic development in mainland China and other emerging economies.