Synopsis and Table of Contents

China’s Innovation: Challenge: Overcoming the Middle Income Trap


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

Synopsis: 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? Assuming that current political arrangements remain unchanged and that it does not or cannot adopt Western sociopolitical economic regimes, can China still develop a new growth model centered on innovation?

This compilation brings together leading Chinese and international scholars to consider the daunting challenges and complexities of building an innovation-driven Chinese growth model. To give the reader a comprehensive perspective, it examines the role of culture, institutions, national policy, firm and individual dimensions in structuring the operation of small and medium-size enterprises, intellectual property, the financial system, sociocultural forces, creativity, industrial sector dynamics, and technology.  The analyses range from strongly optimistic to deeply pessimistic about China’s future.

Table of Contents

  1. China’s Innovation Challenge: An Introduction   pdf download 50

Lewin, Kenney, Murmann

  1. New Structural Economics: The Future of the Chinese Economy

Justin Yifu Lin, National School of Development, Peking University;

  1. Impact of China Invisible Societal Forces on its Intended Evolution

Gordon Redding, University College London

  1. The Road ahead for China: Implications from South Korea Experience

Michael Witt, INSEAD;

   5. Innovation and Technological Specialization of Chinese Industry

Keun Lee, Seoul National University;

  1. China’s Political Economy: Prospects for Technological Innovation-Based Growth

Douglas Fuller, Zheijiang University;

  1. Transforming China’s IP System to Stimulate Innovation

Menita Liu Cheng and Can Huang, Zheijiang University

  1. Building the Innovation Capacity of SMEs in China

John Child, Birmingham University;

  1. Who Benefits When MNEs Partner with Local Enterprises in China?

Simon Collinson, Birmingham University

  1. Advantages and Challenges of Chinese MNEs in Global Competition

Yves Doz and Keeley Wilson, INSEAD

  1. Emerging Trends in Global Sourcing of Innovation

Silvia Massini, Keren Caspin-Wagner, Eliza Chilimoniuk-Przezdziecka, Manchester University

  1. Why is China Failing  to Leapfrog India IT Outsourcing Industry?

Weidong Xia and Mary Ann Von Glinow, Florida International University and Yingxia Li, Beijing Union University

  1. Barriers to Organizational Creativity in Chinese Firms

Zhi-Xue Zhang and Weiguo Zhong, Guanghua School of Management, Peking University;

  1. Institutional and Cultural Contexts of Creativity and Innovation in China

Chi-Yue Chiu, Shyhnan Liou, and Letty Y-Y. Kwan, Chinese University Hong Kong

  1. Reframing Basis for Cross-Cultural Management

Rosalie L. Tung Simon Frazer University

  1. China’s Innovation Challenge: Concluding Reflections

Lewin, Kenney, Murmann


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