ABSTRACT
Innovation studies in the developing country context have paid particular attention to examine the determinants, sources, and capability of innovation, and their contribution to firm’s performance. This chapter outlines the nature of obstacles to innovation and their impact on the innovation output. Obstacles may represent a major determinant of the decision to abandon ongoing innovation projects or simply delay the innovation outcomes. The chapter explores the model underlying the empirical analysis and data and descriptive statistics. It demonstrates how patterns of obstacles appear differently across size groups and technology levels in Chinese manufacturing firms. China’s rapid economic ascendance and fast catching up with the leading industrial countries have become a remarkable economic force influencing the world economy. During the catch-up process, China has not only imitated and assimilated technologies from advanced countries but has also striven to establish indigenous innovation capabilities in order to sustain long-term economic growth.
