ABSTRACT
This chapter presents a critical review of China’s research and development (R&D) policy and the role of key players in the sector. It reviews the role of business sector in China’s R&D, and examines government support and university-industry collaboration. The chapter discusses China’s offshore investment and its impact on domestic innovation. The policy goal is to make China an innovation-oriented society by the year 2020 and a world-leading innovator in the longer term. Associated with the expansion in China’s R&D capacity is the important role of the business sector including private businesses. In the twenty-first century, China has become the world’s third largest source country of foreign direct investment. The business sector dominates China’s R&D field with an investment share of over 70%. This phenomenon is reshaping the structure of China’s R&D activities. Chinese policymakers will also face challenges in reducing regional inequality and retaining skilled R&D researchers in an internationally competitive market.
