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Professor Song CHEN, Ph.D. Deputy Dean, School of Economics Management Tongji University E-mail: chens@tongji.edu.cn Oct. 7, 2013 The Changing National Innovation System in China: Policies and Challenges  * Agenda Introduction and NIS in China 2. The Changing Innovation Policy in China The Challenges of Innovation for China Implications for Developing Countries 1. Introduction and NIS in China China’s Position in Global Technology Competition * A Rising Technology Exporter * 1. Introduction and NIS in China China’s Position in Global Technology Competition In 2004, China became the world’s largest exporter of IT products (US$180 billion, vs US$149 billion for the US) This shift has occurred entirely within the foreign invested companies Some component manufacturing networks have shifted to China * 1. Introduction and NIS in China China’s Position in Global Technology Competition The huge Chinese market Low labor costs of RD engineers Improved innovation and policy environment. 24 100 200 400 600 800 1200 0 200 400 600 800 1000 1997 2000 2001 Feb. 2003 Jun. 2004 2006 2009 1. Introduction and NIS in China Growing MNCs’ RD Centers in China Major MNC RD Centers in China focus on product localization or develop new products for China market while some start shifting towards global innovation 1. Introduction and NIS in China Growing MNCs’ RD Centers in China Government Coordinator Companies Development Universities Basic Research Research Institutes Applied Research 1.Introduction and NIS in China Major Players of National Innovation System Innovation network, with functional division of lalour in innovation. * 2012, China ranked 34 according to GII 2013 WIPO 2013, China ranked 35 out of 142 countries and economies 1.Introduction and NIS in China Global Innovation Index Ranking Institutions Political Environment Regulatory Environment Business Environment * 1.Introduction and NIS in China Global Innov