ABSTRACT
China functions as the linchpin for Asia's future development. Issues of geography provide a crucial lens for examining economic prospects in specific places within this varied country roughly the size of the contiguous United States. The central concern of this book lies with the role of proximity among companies for promoting learning, enabling adaptation to new conditions. This includes challenges faced by both Chinese firms seeking to upgrade product and production techniques, and by foreign firms seeking a foothold in China's domestic market as well as competitive advantage for export production. A major finding of many place-based studies of successful businesses is the key importance of frequent interactions, creating 'learning districts' based on information exchange, which in turn enable companies to be more flexible and innovative. Chinese business parks featuring companies classified as possessing relatively advanced technology serve as spatially distinct areas set aside within large urban areas for the promotion of technology development through transfers from nearby foreign companies and domestic research centers. Comparing how this strategy works in six different locations from the north to southeast coast and inner China (Figure 1.1) demonstrates important variations that reflect location specific attributes within a global hierarchy of production sites. A total of 53 national-level science and technology industry parks have been established at different locations throughout China (Figure 1.2). Division of the cities between parks featuring predominantly multinational companies and those promoting local innovation emphasizes the twotrack nature of development. This study concludes with suggested features of a best practice model suitable for China's circumstances.
