ABSTRACT
Against the background of intensified market competition and increasing labor costs, the Chinese government has gradually revised its economic policy towards an increased promotion of domestic innovation and technology upgrading. The innovation-friendly economic policy is gradually changing the traditional division of labor, under which universities and public research institutes have been responsible for research, and companies mainly for production. While universities and research institutes still play an important role in overall research activities in China, the relative importance of the enterprise sector for innovation in China has largely increased over the last decade.
