Industrial Innovation in China with Special Reference to the Metallurgical Industry

This Note attempts to assess the key factors underlying the effectiveness of the R&D system in the People's Republic of China, the major policy changes and institutional reforms that have been introduced to adapt R&D objectives and activities to the rapidly changing economic system, and the prospects of improving the effectiveness of the R&D system. It analyzes problems of interface between the research institute and the production enterprise, and examines specific problems of innovation in the metallurgical industry. The findings suggest that despite impressive achievements, the quantity, quality, and variety of products of the metallurgical industry cannot meet the demand of the growing economy. The metallurgical industry appears to face the same major problems as the R&D system as a whole. The Chinese leadership has instituted various reforms, including transfer of military technology to civilian use, and sending scientists abroad for training. The reforms should have positive effects on the R&D system.