The future

At an overall national innovation system level there are many challenges ahead.

Despite the global financial crisis, it is likely that the Chinese economy will grow at around 8 per cent in 2008. Managing this growth, which has been maintained at even higher levels for over a decade, is in itself a major challenge. Problems will arise, however, as a result of the 'slowdown' in growth from previous years. The vast numbers of new graduates educated during recent years will face difficulties finding jobs. Company research budgets will be cut. It is unlikely any stimulus will occur as a result of increasing returnees from the Chinese diaspora of over 1 million scientists and engineers working overseas.

The transformation of innovation in China experienced over the past two decades has resulted from strong political leadership. It was recognized at the top levels of government that the export-led, manufacturing-based pattern of economic development would not maintain the level of growth necessary to meet China's social expectations. The focus on innovation has been clearly articulated by political leaders and government departments have had to respond. The implementation of new policies will take time to evolve, but their success will depend on an approach that recognizes the characteristics of China's national innovation system. It is only when a national innovation systems perspective is adopted that issues such as the relative positions of research institutes vis-a-vis universities can be ascertained. Other important innovation issues arise when such an approach is taken. Innovation researchers, for example, have questioned whether there is the extent of the social capital and trust required for the deep engagements required by researchers and businesspeople to work together and be successfully innovative. The relationship between regional and national innovation systems also come to the fore, and especially germane is the need to address the economic disparities between coastal regions and inner China. The political discourse in China refers to 'harmonious growth', and the imperative for inclusive development is the most important challenge confronting innovation in China.

China's experiences hold many lessons, and the challenges it confronts and the ways it addresses them have great implications for the rest of the world. These are rich and rewarding research topics of great practical relevance. Innovation: Management, Policy and Practice welcomes manuscript submissions that improve our understanding of these important questions.

MARK DODGSON

University of Queensland, Brisbane and Imperial College, London

and

LAN XUE

School of Public Policy, Tsinghua University, Beijing

(i) OECD Reviews of Innovation Policy: China (2008) Paris, OECD.

(ii) Gu, S and Dodgson, M: eds (2006) 'Innovation in China: Harmonious Transformation?' Innovation: Management, Policy and Practice, Special Edition, Vol 8, No 1-2.

(iii) Lan Xue 'China: The prizes and pitfalls of progress', Nature, 454, 398-401, 24th July 2008.

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