Takshashila SlideDoc - China’s Quest for Innovation and Technological Advancement

Published July 17, 2023

Executive Summary

China’s rapid advancement in various domains of science and technology have become a topic of significant interest. There have been several explanations that seek to explain how China has been able to compete with established players, especially the United States in bolstering its domestic innovation potential. However, some common explanations such as forced technology transfer, industrial espionage, theft or state capitalism do not entirely explain how China has been able to become one of the global innovation powerhouses.

Several foundational factors such as strengthening its basic health and education metrics, along with 'Creative Insecurity' due to geopolitical competition with the US have facilitated improvements in China's innovation capacity. Furthermore, China's unique political and bureaucratic structure allows it to implement a top-down approach to policymaking. Through what has been described as "Selective Authoritarian Mobilisation and Innovation Model," China has often sought to promote research and development through this top-down approach. This ranges from direct state intervention, buying machinery from abroad, facilitating easy access to finance, promoting foreign direct investment and even industrial espionage. These policy tools have had varied levels of success.

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