ABSTRACT
The discussion of technology development in China has been clouded by vague uses of the term "innovation" and it is helpful to begin with definitions. The problems that arise when governments make huge amounts of money available through administrative channels are obvious, and Chinese scientists have criticized the means by which funding is allocated. While government support and industry involvement are important, the "national innovation system" (NIS) perspective suggests that a country's technological performance depends upon a more broadly defined set of institutions within which technological effort takes place. Technology import through foreign direct investment (FDI) can take place either through wholly owned foreign enterprises (WOFEs) or through equity joint ventures (EJVs) with local firms. Taken together with China's thriving art scene and the evidence that creativity can be improved through training there is no overwhelming reason to suppose that China's technological development must be limited by its absence.
