ABSTRACT
This chapter analyzes the main obstacles of innovation in Northeast China. It explores the “iron triangle” model that is comprised of a rigid system mechanism, the single industrial structure and the spiritless micro market economies. Since the implementation of the strategy for rejuvenating the Northeast’s old industrial base by the national government in October 2003, Northeast China has enjoyed a golden decade with fast economic growth. The Northeast was an important region for exploitation and processing of natural resources in China, especially during the planned economy period before 1978. The governments in the Northeast have devoted efforts to push innovative activities forward through extensive industrial policies, even political slogans. An iron triangle structure, supported by institutional mechanisms, industrial structure, and microeconomic subjects that curb and bind the vitality of the market, leads to the serious shortage of innovation in Northeast China.
