INNOVATION IN CHINA: Indigenous Efforts and Global Integration

China’s achievement of the status as a rising global power in science, technology, and innovation has come from its indigenous efforts. China has also taken advantage of the benefits offered by globalization of research – from its increasing expenditure on research and development and a large talent pool of increasing quality on the input side to publications in international journals, patenting activities and high-tech activities on the output side. Key to its progress, these aspects represent the integration and synergy of endeavors on both fronts. The paper will review unique and exceptional features of China’s science and technology system, especially its reform and opening that have enabled innovation in China to embark on a distinct trajectory, as well as highlighting the challenges that the country has been facing, which have become more acute considering its extraordinary characteristics of path dependence and the changing international environment.