The Role of the Government in R& D Promotion and the Development of Technology-Intensive Industries in China

This article explains the role of the government in promoting China's R& D activities and development of technology-intensive industries. The measures implemented comprise: increasing the amount of R& D expenditure; developing science parks; encouraging private firms to undertake R& D activities and invest in technology-intensive industries by providing tax incentives; and attracting foreign-invested enterprises, in particular those bringing advanced technologies. As a result of government policies to promote R& D activities and develop technology-intensive industries, there has been an apparent improvement in human capital, innovation, and the production and export of output produced in technology-intensive industries. Finally, this article talks of the implications for developing countries pursuing an R& D promotion policy.