ABSTRACT

The last three decades have witnessed the dramatic growth of China as a manufacturing and trading powerhouse. China's growth has been featured by heavy dependency on FDI and exports which can be attributed to regional cooperation to a large extent. However, China has been forced to undertake two kinds of structural adjustment in recent years: at the corporate level around the capability building, typically represented in the so-called indigenous innovation policy, and at the macro level around the change of development mode, that is accelerated by the onset of the subprime crisis.