ABSTRACT
This chapter introduces China’s governance over economic development and also its innovation governance model. First, the chapter reviews various innovation models commonly identified according to their national political economy and development approaches. These include entrepreneurial, public–private association or partnership, and developmental state models, which largely correspond to the variety of capitalism (VoC). Second, the chapter briefly reviews the extensive literature on economic geography and their explanations for innovation, including concepts such as proximity, clusters and industrial districts, related variety and diversity, the regional innovation system, ‘local-buzz and global pipelines,’ and global production networks (GPNs), and coupling and de-coupling between GPNs and localities. Third, after introducing these significant concepts, which are derived from Western market economies, the chapter examines the history of innovation policies in China and outlines some features of the Chinese innovation system. Fourth, the chapter then focuses on innovation spaces in Chinese cities, such as the Zhongguancun Science Park in Beijing and the Zhangjiang High-tech Park in Shanghai, describing their development trajectory from industrial development zones to high-tech parks and, more recently, to the ‘science city.’ Fifth, the chapter interrogates state strategies to build an innovation nation and the role played by the multi-scalar state in innovation. Promoting innovation is a state development strategy. Attracting talent is the tactic to realize this strategy. Sixth, the chapter examines the market operations, especially high-tech park development corporations, technological firms, and R&D centers. Seventh, the chapter reflects on China’s innovation model and explains how this model is situated in its development context. The chapter suggests that China’s innovation governance model adopts a state-led and strategically guided enterprise-centered approach. Its so-called ‘national indigenous innovation’ model is closely associated with state strategies and the deployment of market instruments such as innovation firms and development corporations. This approach combines state initiatives and market actors.
