From "Made in China" to "Innovated in China": Necessity, prospect, and challenges

After more than three decades of high growth based on its low-wage advantage and relatively favorable demographics--in combination with market-oriented reforms and openness to the world economy--China is at a crossroads with a much higher wage and a shrinking workforce. Future growth will depend, by...

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Detalles Bibliográficos
Autores principales: Wei, Shang-Jin, Xie, Zhuan, Zhang, Xiaobo
Formato: Journal Article
Lenguaje:Inglés
Publicado: American Economic Association 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/147677
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author Wei, Shang-Jin
Xie, Zhuan
Zhang, Xiaobo
author_browse Wei, Shang-Jin
Xie, Zhuan
Zhang, Xiaobo
author_facet Wei, Shang-Jin
Xie, Zhuan
Zhang, Xiaobo
author_sort Wei, Shang-Jin
collection Repository of Agricultural Research Outputs (CGSpace)
description After more than three decades of high growth based on its low-wage advantage and relatively favorable demographics--in combination with market-oriented reforms and openness to the world economy--China is at a crossroads with a much higher wage and a shrinking workforce. Future growth will depend, by necessity, more on the generation of increased productivity, and domestic innovation will play an important part in this. In this paper, we assess the likelihood that China can make the necessary transition. Using data on expenditure on research and development, and patent applications, receipts, and citations, we show that the Chinese economy has become increasingly innovative. We will argue that rising wages and expanding markets are among the important drivers of China's growth in innovation. On the other hand, we find evidence of resource misallocation in the innovation area: while state-owned firms receive more subsidies, private firms exhibit more innovation results. Innovation can presumably progress even faster if resource misallocation can be tackled.
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spelling CGSpace1476772025-02-24T21:56:57Z From "Made in China" to "Innovated in China": Necessity, prospect, and challenges Wei, Shang-Jin Xie, Zhuan Zhang, Xiaobo innovation working population economic growth economic development human resources research labour government productivity private sector subsidies patents remuneration public expenditure workers After more than three decades of high growth based on its low-wage advantage and relatively favorable demographics--in combination with market-oriented reforms and openness to the world economy--China is at a crossroads with a much higher wage and a shrinking workforce. Future growth will depend, by necessity, more on the generation of increased productivity, and domestic innovation will play an important part in this. In this paper, we assess the likelihood that China can make the necessary transition. Using data on expenditure on research and development, and patent applications, receipts, and citations, we show that the Chinese economy has become increasingly innovative. We will argue that rising wages and expanding markets are among the important drivers of China's growth in innovation. On the other hand, we find evidence of resource misallocation in the innovation area: while state-owned firms receive more subsidies, private firms exhibit more innovation results. Innovation can presumably progress even faster if resource misallocation can be tackled. 2017 2024-06-21T09:23:10Z 2024-06-21T09:23:10Z Journal Article https://hdl.handle.net/10568/147677 en https://doi.org/10.1257/jep.31.1.49 https://doi.org/10.1016/j.jdeveco.2021.102717 American Economic Association Wei, Shang-Jin; Xie, Zhuan; and Zhang, Xiaobo. 2017. From "Made in China" to "Innovated in China": Necessity, prospect, and challenges. Journal of Economic Perspectives 31(1): 49-70. https://doi.org/10.1257/jep.31.1.49
spellingShingle innovation
working population
economic growth
economic development
human resources
research
labour
government
productivity
private sector
subsidies
patents
remuneration
public expenditure
workers
Wei, Shang-Jin
Xie, Zhuan
Zhang, Xiaobo
From "Made in China" to "Innovated in China": Necessity, prospect, and challenges
title From "Made in China" to "Innovated in China": Necessity, prospect, and challenges
title_full From "Made in China" to "Innovated in China": Necessity, prospect, and challenges
title_fullStr From "Made in China" to "Innovated in China": Necessity, prospect, and challenges
title_full_unstemmed From "Made in China" to "Innovated in China": Necessity, prospect, and challenges
title_short From "Made in China" to "Innovated in China": Necessity, prospect, and challenges
title_sort from made in china to innovated in china necessity prospect and challenges
topic innovation
working population
economic growth
economic development
human resources
research
labour
government
productivity
private sector
subsidies
patents
remuneration
public expenditure
workers
url https://hdl.handle.net/10568/147677
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