Xielin Liu

Comparing innovation systems: a framework and application to China's transitional context

Abstract This paper proposes a generic framework for analyzing innovation systems, anchored around five fundamental activities — R&D, implementation, end-use, education, linkage — and focused on the performance implications of a system’s structure and dynamics. Rather than simply describing the role and performance of particular actors, institutions and policies, this approach focuses on system-level characteristics, including the distribution of these activities within the system, the organizational boundaries around them, coordination mechanisms, evolutionary processes, and the effectiveness of the system in introducing, diffusing and exploiting technological innovations. The framework is applied to a comparison of China’s national innovation system under central planning and since reforms, revealing the evolving structure and dynamics of this system and current inconsistencies and perverse incentives that policymakers must address to realize their development goals. More generally, it provides a basis for addressing the implicit assumptions of organizational types, roles and convergence among innovation systems emerging in very different contexts, whether national, regional or industrial.

ORGANIZATIONAL PROCESSES TO MEET NEW PERFORMANCE CRITERIA : CHINESE PHARMACEUTICAL FIRMS IN TRANSITION

Abstract The current crisis in Chinas state-owned enterprises presents a paradox of performance. Since reforms began in the early 1980s, many state-owned enterprises are producing and selling more, some even reporting increasing profits. Recent discussions of the crisis facing these firms, however, reveal that most of the gains in these performance outcomes has been achieved without regard for efficiency; in many cases, simply by increasing inputs. Only now has the government explicitly recognized the need to shift emphasis from measures of performance based on scale—whether output, sales or profits—to those incorporating considerations of efficiency—return on output, sales and assets. We investigate the managerial and policy implications of such a shift in key performance criteria using longitudinal data on 66 Chinese pharmaceutical manufacturers. We find that both the level and growth in physical assets are the strongest correlates of scale-based performance measures. In contrast, activities which bring in engineering skills, lead to new product development, and increase the proportion of output that is actually sold are the strongest correlates of efficiency-based performance measures. For managers and policymakers, these results have important implications for the timing and level of investment in particular organizational activities and resources.

An exploration into regional variation in innovative activity in China

Based on Chinese patent data from the period 1985-95, this paper explores regional variation in innovative activity and performance. Preliminary analyses suggest that regional differences in economic activity and innovation inputs - personnel and funding - are closely related to differences in patenting activity. However, the results also suggest that personnel may be the most important factor. The data also suggest that regions are undergoing important changes in technological specialisation, although the eventual impact on economic performance and competitiveness is not yet clear.

China is catching up in science and innovation: the experience of the Chinese Academy of Sciences

How can a developing country narrow its science and innovation gap with leading countries? The Knowledge Innovation Program (KIP) in the Chinese Academy of Sciences (CAS) is a giant program for this purpose in China. This article investigates the scientific input and output of CAS since KIP started to be implemented ten years ago. Based on quantitative analysis, we can conclude from the results that KIP is a powerful policy tool for CAS to recruit talent, restructure CAS institutes, extend the researcher pool and introduce merit-based criteria. This has led CAS to narrow the science gap with leading countries; however, the innovation gap has still not been narrowed much. Copyright , Beech Tree Publishing.

China's catch-up and innovation model in IT industry

The environment in which Chinese firms are attempting to catch up is fundamentally different than the situation facing earlier latecomers such as Japan and Korea. This paper contrasts these contexts and describes an alternative model of catch-up that can be discerned through an examination of the industries in which Chinese firms are competing successfully. The basic elements of Chinese catching up strategy are: market size, market-oriented innovation, global alliance and open innovation, spillover of FDI and role of government. The paper explains the new model of catch-up in Chinas ICT industry.

The impact of small world on patent productivity in China

Based on the patent co-authorship data from State Intellectual Property Office of China, this paper examines the evolution of small world network and its impact on patent productivity in China. Compared with the western countries, the small-world phenomenon of the innovation network in China is becoming more obvious. Empirical result shows that the small world network may only have significant impact on patent productivity in those patent productive provinces, e.g., Beijing and Guangdong that filed larger number of patents. Although the collaborations in the network are more endurable in China than ones in western countries, it may be less efficient in transmitting knowledge because of large ratio of administration oriented state owned enterprises (SOEs). With larger ratio of SOEs, the small world network has longer path length and knowledge thus flows less efficiently in Beijing than in Guangdong. The policy implication of the findings lies in that the Chinese government should let the market rather than the administration determine the collaboration of technological innovation, in order to encourage innovation and establish an effective small world network for speeding up flow of knowledge among different type of firms during the innovative process.

A survey of Chinese literature on the management of technology and innovation, 1987-1997

This paper reviews 98 Chinese language articles in order to introduce a growing body of research that investigates technology and innovation management issues in Chinas rapidly evolving transition economy, a context only recently receiving attention in the English literature.

Can international acquisition be an effective way to boost innovation in developing countries

Purpose – The purpose of this paper is to examine the effects of international acquisition activities on performance and its role in innovation build‐up in developing countries.Design/methodology/approach – A case study was used to understand the deep integration process of acquisition process. The theory behind the study is the relationship of innovation management and merger and acquisition activities.Findings – Acquiring a company with higher technologies has more risks and it requires the acquiring company to master a fast learning capability. The key to a successful international technology acquisition for a developing country is to leverage technology dynamics and build up a high‐level learning capability to absorb tacit knowledge.Research limitations/implications – An in‐depth case study was adopted. Further quantitative research may be needed to test our research outcome here.Practical implications – The case study may provide valuable reference for the companies aiming to catch up via internation...

Diffusion of Mobile Telephony in China: Drivers and Forecasts

Analyzing mobile telephony diffusion involves identifying drivers and forecasting growth using a growth model. However, to our knowledge, no framework for model selection exists. To eliminate ad hoc model selection, this study presents a novel model-comparison method based on an analysis of mobile telephony diffusion in China, which accounts for one-fifth of global mobile telephony subscriptions. Determinants of the diffusion rate are then analyzed using the most appropriate model identified by the proposed model-comparison method in terms of minimum root-mean-square error. Empirical results identify the Gompertz model as the best model for diffusion forecasting. The three most significant determinants are low-cost mobile handsets, prepaid services, and personal handy-phone system (PHS) services. All of these determinants contribute to meeting the demand in Chinas low-end market. This study combines the proposed model-comparison method with estimates of determinants of diffusion rate to improve analysis and forecasting accuracy for mobile telephony diffusion. Moreover, model comparisons using data from eight representative countries (Brazil, China, France, Germany, India, Russia, the U.K., and the U.S.) provide a valuable reference for model selection for mobile telephony diffusion.

INNOVATION DIFFUSION: MOBILE TELEPHONY ADOPTION IN CHINA

The rapid diffusion of mobile telephony is an important subject in diffusion studies of innovation. This study attempts to learn how mobile telephony diffuses in China, which has the most mobile telephone subscribers worldwide, in terms of the appropriate growth model and forces driving the diffusion. To identify the appropriate growth model, this study compares the fitness and forecasting ability of three conventional models — the Logistic, Bass, and Gompertz models. The determinants of the diffusion rate are then analyzed based on the most appropriate model. Empirical results, based on data for mobile telephone subscribers in China for 1986–2007, indicate that the Gompertz model performs best. Moreover, the four determinants for the diffusion rate are: number of fixed-line telephone subscribers, the low cost of mobile handsets, pre-paid service and the personal handy-phone system (PHS) service.