China’s Innovation Challenge

The miracle growth of the Chinese economy has decreased from a compound annual growth rate of 10% to less than 7% as of 2015, raising questions about China’s prospects for avoiding the middle-income trap. The two engines of growth — exporting on a scale never before witnessed and massive infrastructure investments — are reaching the point of diminishing returns. This poses the central question explored in this book: Can China escape the middle-income trap?

This compilation brings together leading Chinese and international scholars to consider the daunting challenges of building an innovation-driven Chinese growth model. The analyses range from strongly optimistic to deeply pessimistic about China’s future.

Table of Contents

Edited by Arie Y. Lewin, Martin Kenney & Johann Peter Murmann

1. China’s Innovation Challenge: An Introduction — Arie Y. Lewin, Martin Kenney, Johann Peter Murmann

2. New Structural Economics: The Future of the Chinese Economy — Justin Yifu Lin, National School of Development, Peking University

3. Impact of China’s Invisible Societal Forces on its Intended Evolution — Gordon Redding, University College London

4. The Road ahead for China: Implications from the South Korea Experience — Michael Witt, INSEAD

5. Innovation and Technological Specialization of Chinese Industry — Keun Lee, Seoul National University

6. China’s Political Economy: Prospects for Technological Innovation-Based Growth — Douglas Fuller, Zhejiang University

7. Transforming China’s IP System to Stimulate Innovation — Menita Liu Cheng & Can Huang, Zhejiang University

8. Building the Innovation Capacity of SMEs in China — John Child, Birmingham University

9. Who Benefits When MNEs Partner with Local Enterprises in China? — Simon Collinson, Birmingham University

10. Advantages and Challenges of Chinese MNEs in Global Competition — Yves Doz & Keeley Wilson, INSEAD

11. Emerging Trends in Global Sourcing of Innovation — Silvia Massini, Keren Caspin-Wagner & Eliza Chilimoniuk-Przezdziecka, Manchester University

12. Why is China Failing to Leapfrog India’s IT Outsourcing Industry? — Weidong Xia & Mary Ann Von Glinow, Florida International University; Yingxia Li, Beijing Union University

13. Barriers to Organizational Creativity in Chinese Firms — Zhi-Xue Zhang & Weiguo Zhong, Guanghua School of Management, Peking University

14. Institutional and Cultural Contexts of Creativity and Innovation in China — Chi-Yue Chiu, Shyhnan Liou & Letty Y-Y. Kwan, Chinese University of Hong Kong

15. Reframing the Basis for Cross-Cultural Management — Rosalie L. Tung, Simon Fraser University

16. China’s Innovation Challenge: Concluding Reflections — Arie Y. Lewin, Martin Kenney, Johann Peter Murmann