China's Policy on Science and Technology: Implications for the Next Industrial Transition

Since the formation of the People's Republic of China in 1949, Science and Technology (S&T) has been the focus area for Chinese economic development. However, little was known about China's scientific mission, working and policies till the end of 1978. Based on the studies and the developments made, one can say that China's S&T policy has evolved through four phases. The first phase (1949-1959) supported the development of heavy industries along the Soviet lines; the second phase (1959-1976) witnessed economic stagnation and ideological domination of technology projects; the third phase (1976-2001) focused on market-driven and product-driven research and now in her fourth phase of S&T development, since 2002, China has aimed to develop high technology industries and the nascent clean-energy or green technology with a focus on innovation. These policy changes entirely reformed the way China's industrial enterprises are being managed today as compared to earlier years. However, some thinkers do not consider these reforms as sweeping or successful. In order to better appreciate the implications of the S&T policy in China's industrial transition, the article analyses the role and effects of the policy that has assisted in enhancing the country's S&T strength and improving the competitiveness, while supporting its economic and social development.