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OECD Reviews of Innovation Policy: China 2008

image of OECD Reviews of Innovation Policy: China 2008

OECD Reviews of Innovation Policy offer a comprehensive assessment of the innovation system of individual OECD member and non-member countries, focusing on the role of policy and government. The Chinese government has launched a national strategy to build an innovation-driven economy and society by 2020. Will China be able to succeed in making this challenging transition? This report assesses the current status of China’s national innovation system and policies, and recommends improvements required in both the policy and institutional environments for China to succeed in promoting innovation through a market-based approach.

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Governance and the Role of Government in the Chinese National Innovation System

Innovation governance refers to the institutional structures and processes through which governments influence the efficacy of the innovation system. It has become an important concern in many countries in view of the increasing complexity of steering, coordinating and managing the overall national innovation system (NIS). A recent OECD study (OECD, 2005a) gave broad empirical evidence of the challenges governments face as they seek to upgrade and readjust governance structures to adapt to new external and internal pressures. Innovation governance is an essential component of a national innovation system for stimulating innovation but it also determines and influences how well governments can adapt and learn in the process of policy making and implementation. Improving innovation governance is also an important aspect of the search for more coherent policies in dynamic and more complex economic environments.

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