Chinese Technological Innovation in the Context of the One Belt One Road Initiative

This paper examines the One Belt One Road Initiative (OBOR) impact on China's technological innovation. It argues that developing OBOR economies can offer China solutions to the problems of overcapacity, and create more market opportunities for Chinese manufacturing industries; however, this alone does not suffice to stimulate China's technological innovation potential. In contrast, China's forecasted entry into the developed OBOR markets on a competitive basis will provide incentives to the Chinese government to further consolidate its 'entrepreneurial state' role, as has been undertaken in various past instances, among which, the innovative development of High Speed Trains is the most notable. For this to take place, China needs to consider the barriers impeding technological innovation and address them properly. This study endeavours at investigating how to benefit from China's OBOR initiative to promote innovation in Science & Technology. On conducting interviews with the industry experts and analyzing a technology innovation case study, a generic formula for innovation (specific to the Chinese context) was derived. This formula can be used as a guideline for technological innovation policies and regulations that can enhance the potential for China's competitive edge in the developed OBOR countries.