The Source of Innovation in China / Palgrave Studies in Chinese Management (PDF)

Ying Ying Zhang is Associate Professor of Management and Organization at CUNEF, Complutense University of Madrid, Spain. Before starting her academic career, Professor Zhang worked extensively in international business between Spain and China including negotiation, consulting and cross-cultural training.

Yu Zhou is Associate Professor of Human Resource Strategy at School of Business, Renmin University of China, and a Wertheim research fellow at Labor & Worklife Program in Harvard Law School, Harvard University. Being an expert in innovative HR systems, he has published papers in many international reputed journals and been advising numerous firms to advance their strategic HR practices.

Prologue Author:
Richard Freeman holds the Herbert Ascherman Chair in Economics at Harvard University, US. He is currently serving as Faculty co-Director of the Labor and Worklife Program at the Harvard Law School. He directs the National Bureau of Economic Research / Sloan Science Engineering Workforce Projects, and is Senior Research Fellow in Labour Markets at the London School of Economics' Centre for Economic Performance. Professor Freeman is a Fellow of the American Academy of Arts and Science and is currently serving as a member of two panels of the AAAS, The Initiative for Science and Technology, and The Commission on the Humanities and Social Sciences. He is also a member of two current Panels of the National Academy of Science, The Committee on Assuring a Future U.S.-based Nuclear Chemistry Expertise, and the Committee on National Statistics Panel on Developing Science, Technology and Innovation Indicators for the Future.

After a glorious past of innovation second to none, China lost the train of the Industrial Revolution and had to pay dearly with the "century of humiliation". The lesson has been learned. One of the key factors of China´s galloping economic development of the last third of a century is the leadership's obsession with science, technology and education. Deng Xiaoping considered technology the main factor of production. Besides, China knows that to escape the "middle income trap" it has to move towards a knowledge economy. Against conventional wisdom, Yingying Zhang and Yu Zhou shows that it is innovation, along with low-cost, that underpins China´s economic development. They defines the sources and strategic focus of Chinese innovation, and emphasizes the relevance of cultural factors. The speed of China´s catching-up in science and technology will determine the pace of its economic growth, of its penetration of international markets and of its transformation into a true great power.

Eugenio Bregolat, Former Ambassador of Spain in China and Author of The Second Revolution in China

The thesis of this book is that China's economic success is based on innovation, rather than inexpensive labor. Expectations that China's economic rise will stall due to rising labor costs thus may be misplaced. An incremental innovation dynamic identified by the authors, spread widely through industries at different levels of technology, suggests that China's economy can sustain higher wages but can it take global leadership in innovation? Rather than relying on technology transfer for access to advanced technology, can China produce more fundamental forms of innovation that derive from university-industry government (triple helix) interactions based on an open Civil Society?

Henry Etzkowitz, President Triple Helix Association (THA), visiting Professor at London University and Edinburgh University, UK

Manufacturing development in China is on the