Making Innovation Work for China and other Developing Countries

The video discusses China's development strategy, highlighting its focus on reforms and opening up, with less emphasis on innovation. Xiaolan Fu, a professor at Oxford, explains the transformation of industrial policy to include innovation. She notes that while China has grown through knowledge transfer, it now needs to focus on indigenous innovation to become a high-income country. Challenges such as lack of incentives and obstacles in innovation are discussed, along with the need for multidisciplinary research in the future.

What is a key reason for government support in the early stages of the innovation chain?

• Innovation is costly and risky.

• Innovation is only beneficial to the private sector.

• Innovation is inexpensive and low-risk.

• Innovation has no externalities.

What has been a significant factor in China's fast growth over the past three decades?

• Isolation from international trade.

• High levels of indigenous innovation.

• Focus on original research and development.

• Dependence on cheap labor and price competitiveness.

What is one of the main challenges China faces in enhancing its innovation capacity?

• Inability to produce original innovation domestically.

• Insufficient knowledge transfer from international trade.

• Lack of access to foreign technology.

• Over-reliance on indigenous innovation.

What is a major issue affecting private sector investment in innovation in China?

• High levels of government intervention.

• Lack of incentives for long-term investment.

• Excessive focus on manufacturing.

• Overabundance of skilled labor.

What approach is suggested for future innovation research?

• Relying on political science alone.

• Encouraging multidisciplinary collaboration.

• Focusing solely on economic theories.

• Using only case study evidence.