Catching Up in Economic Transition: Innovation in the People’s Republic of China and India

We examine how the People’s Republic of China (PRC) and India, two of the largest transitional economies in Asia, have improved their innovation capability during economic transition. First, we measure and compare innovation capability of both countries by using not only various input and output indicators of innovation systems but also the contribution of technological progress to economic development at different periods of their economic transition. Then we compare how both countries developed their innovation capabilities by focusing on the transformation of their national innovation systems since the economic reform and evolving technology policies. Then we provide a brief view on how the emerging innovative cities in both countries became dominated by the innovation activities of their respective countries.

WORKING PAPER NO: 809