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China’s quest for innovation: progress and bottlenecks
Alicia García-Herrero, Robin Schindowski 2023-07-19
As the Chinese economy continues to decelerate, the central government is investing heavily in innovation, doubling down on research and development (R&D) spending and STEM-oriented human capital. In this paper, we assess China’s progress so far, looking at the inputs to innovation (R&D and human capital) as well as intermediate targets, such as scientific research and patents. We then evaluate how China has fared with respect to the ultimate goal of commercialising this progress, by looking at the value-added of Chinese exports and the overall productivity of the economy. We identify three potential bottlenecks that might be hindering the translation of China’s innovation efforts into productivity growth.
This paper has been produced as part of the project ‘Dealing with a Resurgent China’ (DWARC), which has received funding from the European Union’s Horizon Europe research and innovation programme under grant agreement number 101061700.
Views and opinions expressed are those of the author(s) only and do not necessarily reflect those of the European Union. Neither the European Union nor the granting authority can be held responsible for them.
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