China's lessons for India. / Volume II, The political economy of change

This book and its companion volume offer a better understanding of the lessons that Indian policymakers can learn from China’s economic experience over the last 40 years. The aim of the two books together is to evaluate China’s incremental reforms and how these reforms have impacted on the Chinese economy, based on a classical rather than from a neoclassical perspective using a case study method. In this second volume, the author examines knowledge creation, knowledge spillovers and entrepreneurship across both China and India. The comparative study places the theoretical analysis of the previous volume in a real-world context of how China’s economic reforms since 1978 have actually impacted on the country. Its real-world findings of the Chinese economy present a complete perspective on China’s lessons for India as well as at a global context. Preface 7 Acknowledgements 9 Contents 11 List of Figures 12 List of Tables 15 1 Introduction 17 2 Knowledge Creation and Innovation Systems in China 22 Modelling Innovative Systems 24 China’s Innovation Systems 29 Centres of Innovation 34 Elements of Centres of Innovation 38 Telecommunications Infrastructure Pre-1978 38 Telecommunications Infrastructure Post-1978 40 3G and 4G Mobile Networks 43 Internet Development 47 The Internet in China 48 Research Institutes and Corporate R&D 52 Invention in Geographical Space 57 Patents 57 Scientific Papers 62 References 68 3 Knowledge Creation and Knowledge Spillovers: China’s Aggregate Economy 74 Innovation Systems 75 Innovation Systems in China 75 The Competence Block 80 Components of a Competence Block Education 82 The Mao Zedong Period: 1949–1976 82 The Deng Xiaoping Period: 1977–1997 83 The Jiang Zemin Period: 1997–2002 87 The Hu Jintao Period: 2002–2012 88 Xi Jinping Period: 2012–2020 91 Impacts of Educational Reforms 93 Centres of Research and Research Commercialisation 96 Functions of Universities 96 Science & Technology Parks 99 Science & Technology Regional Policy 101 High-Tech Zones 104 Incubators 106 SMEs 108 Returning Students 111 Innovation Systems in India 112 New Economic Geography Revisited 117 References 123 4 Entrepreneurship in China and India 128 Measuring Entrepreneurship 130 Entrepreneurship in Transition Economies 131 Entrepreneurship in China 133 Changes in Firm Ownership in China 139 Indian Entrepreneurship and Innovation 150 References 165 5 Comparative Study: Jiangsu, Hubei and Gansu: 1949–2014 172 Cross-Provincial Analysis 173 S&T Personnel by Region 196 Institutions by Region 197 Technical Research Topic—Natural Sciences 198 Major Indicators of LME by Region 198 Case Study Structure 202 Jiangsu 204 Infrastructure 206 Manufacturing Industry 209 S&T Research Parks, High-Tech Zones 211 Education 215 Hubei 218 Infrastructure 218 Manufacturing Industry 221 S&T Research Parks, High-Tech Zones 222 Education 225 Gansu 227 Infrastructure 229 Manufacturing Industry 232 S&T Research Parks, High-Tech Zones 233 Education 234 Innovation in China: The Future 238 References 243 6 Tales of Two Types of Regional Integration—The UK, the EU and China 244 Introduction 244 Trade Diversion, Resource Diversion and Over Competition—Market Failure 246 Theories of Regional Integration 248 The United Kindom and Regional Integration 253 The People’s Republic of China and Regional Integration 261 Conclusion 262 References 264 7 Conclusion 267 ‘How Have infrastructure, knowledge creation and knowledge spillovers contributed to the economic growth of China?’ 268 ‘From a political historical perspective, how have the post-1978 economic reforms contributed to building soft and hard infrastructure in China?’ 270 ‘In China’s case, why has manufacturing concentrated in the coastal regions leaving the periphery to play a minor role in national economic growth?’ 273 How can India learn from China’s experience? 274 Index 277 Front Matter ....Pages i-xviii Introduction (Sangaralingam Ramesh)....Pages 1-5 Knowledge Creation and Innovation Systems in China (Sangaralingam Ramesh)....Pages 7-58 Knowledge Creation and Knowledge Spillovers: China’s Aggregate Economy (Sangaralingam Ramesh)....Pages 59-112 Entrepreneurship in China and India (Sangaralingam Ramesh)....Pages 113-156 Comparative Study: Jiangsu, Hubei and Gansu: 1949–2014 (Sangaralingam Ramesh)....Pages 157-228 Tales of Two Types of Regional Integration—The UK, the EU and China (Sangaralingam Ramesh)....Pages 229-251 Conclusion (Sangaralingam Ramesh)....Pages 253-262 Back Matter ....Pages 263-274 Annotation This volume and its companion offer a better understanding of the lessons that Indian policymakers can learn from China's economic experience over the last 40 years. The aim of the two books together is to evaluate China's incremental reforms and how these reforms have impacted on the Chinese economy, based on a classical rather than from a neoclassical perspective using a case study method